Sounds like a hard money lender that wants to take a property from you when you default.There's a lot of issues here starting with a guy that will loan you money and once it gets difficult wants you to abandon ship- red flag.There are a lot of unknowns here but trying to dump it seems like a 100% guarantee to lose money.

I bought my first home using the VA loan for 0% down.

Conventional loan

My only other bills are phone, insurance, gym, and student loan.

Conventional loan

I have a $375K  2.5% 15 year loan, paid off in 8 years.

I see so many assumable loan which seems like deal, but I am unable to take it as my DTI is high due to primary property etc. 

,also, yes I see why you would have to sell a mortgage at a steep discount because there would be a tiny amount of buyers and not much market for it.also banks yes are allowed to loan up to whatever the reserve rate is and they can package multiple mortgages and sell them off. 

Does having the capacity to pull a business loan or business credit card benefit strategy in any significant way?

If you need an earnest money loan, Ping me.