I plan to eventually transfer it into an llc I created once it is rented, and refinanced.

If you truly want to be taken seriously in this business, you're going to have to put in a bit more effort.

You can use the VA loan for your primary but wouldn't be able to use it for an investment, unless it were a multi-unit you planned to house hack.

I'd recommend checking out BiggerPockets Find A Lender Tool to filter for optionshttps://www.biggerpockets.com/business/finder/lenders

How does anyone find a way out of the scourge of renting with these kinds of business practices by landlords? 

Just open a separate bank account, give it a business name and keep track of all income and expenses.

He has city approval and the plans drawn up and he is in the process of getting bids for the work. 

My plan is to allow my portfolio to compound, and then after college pill up some money and start investing in real-estate.

Which will bring plenty of other investors and general business to the area.

You have never seen it, and do not understand that tax returns reveal all, and the credit report it just one of many ways debt is uncovered and a LLC is simply a vehicle for a business just like any other self employed business.