@Jay Hinrichs Good point I thought that too but owning that other property outright can make the BK tricky as I think the trustee could force her to sell it.

@Alex Corral They are forcing me to have both...it's company policy they say. 

Hi my name is Chad and I am currently active duty (Air Force, 12+ years) and stationed at Mountain Home AFB in Idaho.  

So for the next year the payment is about ~$400/mo. less and rent is set at $2000/mo.After property taxes begin at this point we will break even, and around that time look to move out of our half of the duplex (after finishing the basement to force equity) and either hold the duplex to appreciate, and perhaps throw off a little bit of cash, or flip this side to an STR.

I think it’s mostly the horror stories about it being illegal to evict tenants for anything other than extreme cause or raise rents, being forced to pay relocation fees in the tens of thousands.

But if there is forced equity that comes with that and the rent or tenants jump dramatically I would do it too! 

You will be living inexpensively (mortgage payments are often less than rent), while "forcing" the appreciation of the home by fixing it up. 

Cash flow is the easier half of the equation in Lansing; the hard part is forcing the property's equity up.

Also, should I look for something that I can get some forced appreciation in the property and tie in the VA Rehab Loan?

A mid term rental approach, as @Olivia Radziszewski suggested, may attract a higher quality "roommate", like a nurse, project manager, or armed forces personnel,  etc.