I have excellent credit and will put 40% down. thanks in advance for any advice.

If you can find yourself a Realtor that specializes in this type of inventory you'll have more than enough options to choose from & theoretically experience a more professional closing as the Realtor would be using all of the state required forms, licensed title companies & proper deeds etc.....Now all of the above aside no matter how you come across the property whether it be Realtor, Turnkey Operator, Wholesaler or FSBO whenever you are buying a property out of state you should do a few things to ensure the experience is as smooth as possible.

The banks and credit unions that cater to the military community know all the ins and outs of VA loans.

I want to use my 18 month interest free credit cards to pay for the rehab and cash out refi to pay those off after the job is complete, place either a college student(s) in the home or rent to section 8 tenants once everything is complete.

I've been content to wholesale, stow away cash, and keep a strong credit profile for when things bottom out but a "brain fart" popped in my head.  

They offer special perks and better terms usually.

My issue comes with my DTI ratio being too high to have both properties on my credit report. 

May have a better chance if it was a small local servicer, credit union, private money lender.

Great tenants, want to keep this one.four properties on a business line of credit, interest only, the interest rate just increased to 6.5%. owe 200k, monthly payment around $1,074.  

Someone mentioned to me that it could be presented to bank for an amount and ask for a credit back for repairs.