Does age of building have an effect on the cap rate?  

Currently financial figures are as follows:Mortgage: $2200HOA: $550Monthly Property Tax: $600Maintenance: $50-100Total Monthly Cost: ~$3400 / month Rental income generates around $1400 a month leaving me with an "effective" monthly payment of $2000.

Will see which is the most cost effective option.

Not all mortgage banks are fully honoring the new VA loan rules that came into effect 9 days ago.

Meaning, Westcliff, TCU, and Fairmount all fit a "up and coming" description but those are not investor friendly neighborhoods because you will not rent them as effectively as other neighborhoods. 

If so it probably wouldn't effect the value all that much.

I looked at the link you provided, and I didn't see that all foreign properties are subject to the ADS . . . what I saw was 'Any property imported from a foreign country for which an Executive Order is in effect because the country maintains trade restrictions or engages in other discriminatory acts.'

Also, don't forget to ask the contractors for suggestions/ways to be cost effective in replacing the roof. 

This rule was not in effect when I bought but since I was living in it, I wasn't grandfathered in to allow me to rent it out. 

I am most likely going to go the FHA route and I am wondering if I should try direct mail to find deals or what the effective methods are that successful investors are using in this area to find great deals.