I recently read in a book that suggested I should open a dual checking and savings account, and take the security deposits from my future tenants and store them in the savings account, then use the checking to pay the mortgage or maintenance fees.

Many people focus on the “entitlement amount” but the more important number to pay attention to is the ‘county loan limit’.

I would be willing to pay the gap as a down payment and assume the loan at 3.875%.2) I agree!

The employment GAP isn't always an issue as long as you're now a W2 employee, can show 30 days of pay stubs (not self employed), and you can provide a letter of explanation stating the cause of the employment gap.For a VA loan, in order to use the rental income from the other units you'll need:1.

As a turnkey company they have a true production line to rehab their homes. 

Then why would you consider paying $1.3 million for this property - $70,000 over value?

You have the option of paying this yourself or have the tenant pay it.

Currently, I have tenants paying via Venmo/Zelle.

As long as you Have the income to pay for both houses and you have to live in it for one year.

Sell it entirely  , pay-off loan build our capital 2.)