I think getting a property under contract and then, during your due diligence period, finding the cash is just a normal way of doing things.

After that period is up, they can move out and use the property as a rental.Generally, people refinance to a conventional loan in order to get their VA credit back for purchase of their next primary home...rinse and repeat.

Getting a loan is stressful itself since the bank (ie underwriting) will be coming back periodically asking for more information. 

With the unknown time period for eviction, should we offer $1-2k simply to get her to move out and begin fixing the property for a new tenant? 

This way you get your offer out there to a larger audience and increase your chances of getting a deal in a shorter period of time.

@Dovi ZagelbaumFind out from lenders what seasoning period they require, generally 6-12 months.

The original appraisal may hurt you or a seasoning period may come into play to make it difficult to refi immediately for the ARV your hoping

While I will definitely use this property periodically for personal leisure, I am seeking for ST rental income to fully cover expenses (and then some).

Also, most banks have a seasoning period before you can cash out refi and our credit union is 2 years, but they will do 80% loan to value.

I would think the buyer agent would be worried silly about blowing past the financing contingency period and screaming on the phone at the appraiser for you.