In Virginia you can foreclose on the home when it becomes defaulted and there is no waiting period for the homeowner to try and pay the delinquent note back.When can you obtain the title for the property?

Once you take into account all of the costs of obtaining their money, and get a true picture of the expenses on the property, 1200.00 in income might not look as attractive.Look into other creative options as well - would the owner of the duplex be willing to carry back the loan, or lease to you with an option.

There is always a difference between what one believes is the FMV vs what would actually be obtained at a sale.  

Points, or any fee charged that are required to obtain a loan is pre-paid interest, that will be computed into any usury rate. 

Grounds for denial of issuance of license or for disciplinary action(A) In addition to Section 40-1-110, the commission may deny issuance of a license to an applicant or may take disciplinary action against a licensee who:(1) makes a substantial misrepresentation involving a real estate transaction;(2) makes false promises of a character likely to influence, persuade, or induce;(3) pursues a continued and flagrant course of misrepresentation or makes false and misleading promises through associated licensees or through any medium of advertising or otherwise;(4) in the practice of real estate demonstrates bad faith, dishonesty, untrustworthiness, or incompetency in a manner as to endanger the interest of the public;(5) represents or attempts to represent a real estate broker other than his broker-in-charge or property manager-in-charge without the express knowledge and written consent of the employing broker-in-charge or property manager-in-charge;(6) guarantees or authorizes and permits any associated licensee to guarantee future profits from the resale of real estate;(7) makes a dual set of contracts, written or otherwise, by stating a sales price higher than the actual sales price in an effort to obtain a larger loan from a lender or lending institution or for the purpose of misinforming a governmental agency or any other reason;(8) is convicted of violating the federal and state fair housing laws, forgery, embezzlement, breach of trust, larceny, obtaining money or property under false pretense, extortion, fraud, conspiracy to defraud, or has been convicted of a violent crime as defined in Section 16-1-60, has been convicted during the previous five years of a felony directly related to the practice of the profession, or has been convicted during the previous seven years of a felony, an essential element of which is dishonesty, reasonably related to the practice of the profession, or pleading guilty or nolo contendere to any such offense in a court of competent jurisdiction of this State, any other state, or any federal court;(9) fails to report to the department in writing by certified mail, within ten days, notice of conviction of a crime provided for in item (8);(10) fails, within a reasonable time, to account for or to remit any monies coming into his possession which belong to others;(11) pays a commission or compensation to an unlicensed individual for activities requiring a license under this chapter.

If so, how did you go about obtaining one? 

Using your VA loan, it will be easier to obtain financing and start to build a track record of doing multifamily deals.

However, before the sale the title company should have obtained an estoppel certificate from the management company showing all outstanding balances, the balance due on date of closing, and all property violations.

@Justin ReppYes a solo 401k can obtain a non-recourse loan.

If you own your properties free and clear it would be a simple matter to obtain some financing secured by these and by your new building and use a reverse to purchase your replacement property first.