The banks/ financial companies wholend on such projects, can't seem to figure out how to fit me and theinvestment into their criteria box.

It's an excellent place for both new and seasoned investors to gather, network, and delve deeper into specific investing topics or strategies.If you plan to use private or hard money, the barrier of entry is a bit tougher for new investors.

I dont plan on building anything on the property, if and when, it gets rezoned.

It's great to hear about your real estate investment journey and your plans to expand in Houston.

The amount of the gain exclusion when the house is sold will likely be impacted, I recommend your family member speak with a CPA when they plan to sell just in case their fact pattern has changed. 

I still have my first investment property from 2015 and plan to keep for many more years. 

Love your plan and why behind what you are wanting to do @Stacy Reese!

Personally, I think it could be a great marketing plan for sellers if they purposely advertise to VA buyers and offer to cover the funding fee. 

What is your final plan for the property (rent the units / sell)?

LLC or LLP or combination could be a much better fit.