If this is too difficult for you then I recommend setting  up a third account that is strictly for holding funds until you are ready to invest them.

I was curious if there were strict rules in relation to this - ideally they would love to rent it out for the 10 summer weeks and enjoy the property for a week or two throughout the year until they retired.

Your state may have strict requirements making it fraud there; however, it is perfectly acceptable and often times viewed more favorably than an unsecured loan for the very fact that the loan is secured by collateral.

Due to the strict lending requirements of VA loans, the home is complete updated and has new Romex electrical and electrical panel, new copper plumbing for hot and cold water line, new black abs drain lines, new main drain line, new sewer line, new composition roof, an I-beam reinforced deck, and more.

I’m not strictly looking for multifamily, but also single family that have garage apartments or detached living.

Most multifamily throughout the Las Vegas Valley is c+/- class, we are still a transient community with high tenant turnover rate, however, with strict tenant screening it is possible to find decent ones. 

Just because it's "working" for you doesn't mean you can't raise your sights a bit.The reality is, no one should buy the property you bought for strictly rental purposes.

Even if you were buying as a owner occupant, most states have strict rules about you being entitled to HOA/Condo docs. 

I would be handling all the remodeling etc.My goal is to make this stand up on its own and have him view it strictly from a business standpoint. 

I think you would be much better served trying to find another property unless you're going to make a million bucks here.Reverse mortgages have some pretty strict regulations that will be complicated for the average person to understand (like the heirs) so there is a lot going against you.