The VA loan is an even better product than most people realize, but there are a LOT of stipulations and most loan officers (a) don't know about the even better benefits like: multiple VA loans, joint VA loans, VA loan assumptions (including the super-low interest rates), VA loan eligibility for surviving spouses, multi-family loans, the VA simultaneous purchase and renovation  loan , etc and (b) those troublesome stipulations that get buyers in trouble mid-way through the closing.  

Assumption & Assignment of leases.  

I always have had the assumption that if someone is getting something for free, they will not respect the property.    

One further assumption here is that your friend's spouse is also military and had no income in NJ except military pay.  

My assumption was the applicant has played this game before.

@Remone Randolph With the assumptions you laid out, you would get zero cash at closing.Appraised value $600k x 80% LTV = $480k max loan$480k max loan - $477k existing loan payoff - at least $3k closing costs = $0 cash available at closingNow, if you can find someone to go to 90% LTV you could get out $60k minus closing costs.  

I would beware advice that ignores vastly different levels of risk, compares income only on one asset class to total return (income/dividend + appreciation) on another, or that is predicated on straight line return assumptions and gimmicky made up catchphrases like "artificial cash flow". 

If the investor's non-retirements funds are all in real estate, then IRA investments in stocks/bonds helps diversify.3)  The IRA investment has less risk because it is not leveraged.Disadvantages:1)  Leveraged real estate return of 18% is greater than the non-leveraged IRA stock/bond return of 8% (see assumptions above).  2)  The marginal tax rate of a real estate investor may not drop during retirement because their real estate income will continue in retirement and because taxes may increase in the future.  

Does this mean you were WRONG about your IRR assumptions?

Now it could be that the OP is buying properties that have probate issues or some other title defects that are taking time but those should be conveyed to you very early in the process.My assumption is if these are small dollar deals.. ( and of course I have no way of knowing) they are just getting pushed to the bottom of the stack.