In my case, the builder was about 90% finished building Phase II of the subdivision when I bought.

I cant speak to VA however in seattle I know probably 5-6 community banks who could do something like this:- 75% of ARV - after repair value, they will only lend up to a max of this on what they percieve your project will ultimately be worth- 90% LTC - loan to cost (acquisition + rehab cost) as they want you to have min 10% skin in the game so to speak  some banks are more conservative and they might say " we're a 75/80 lender," this means they are 75% ARV and 80% LTC or in order words they want you to have 20 cents skin in the game for every 80 cents they distribute to you during the construction or during the loan process- usually 1.5 to 2.0 points- usually 4.5 - 6.5% rate interest only for 12 months with extensions at cost - much cheaper than HML  as HML can range from 12-15% + 3-6 pts probably - they usually reimburse after satisfactory inspection (usually $125-175 bucks per inspection paid by you) - this is important since you have to have the cash to front the initial first phase of rehab and you will get "reimbursed," after its completed then on to the next phase.

The acquisition phase, the Rehab phase, and the Refinance phase.  

I'm super excited about starting, even went to look a distressed houses in a neighborhood I might like to invest in.Here is something I more intently started thinking about just today (Little late, but I was still in the dreamer phase of REI).

I'm in the setup phase right now, hopefully it will be funded by next week. 

Phase 1 environmental testing has been inconclusive, and a grant from the state has been awarded for phase 2 & 3 testing with the balance going to any clean-up.

I will be using personal funds for the rehab and in the end doing a cash out refi.First question is would I rehab a few units and start renting them out in phases or would I attempt to get the entire project completed and then rent the units?

Or maybe an agent in a different phase in their strategy.

From $100,000 to $150,000, you can deduct losses from passive activities but its phased oug at $.50 per dollar.Keep in mind, too, losses can be carried forward.  

I think there's plenty of free training out there to get you through the preliminary analysis phase, but if you're gonna pull the trigger, then the paid training is invaluable; Scott Meyers and Mark Helm are 2 big ones.