The smaller unit (2br/1ba) needed updates inside, the larger (3br/1ba) was almost completely updated with a couple minor exceptions What made you interested in investing in this type of deal?

There are limited exceptions to IRC Sec 195. 

One scenario: My thinking is that if I potentially purchase a 5Bed & 4Bath (for about $300k) and house all the rooms except one (which is where I'd live), then I might be able to get pretty good cashflow if i rented each room for at least $500 especially if the mortgage will be just under $2,000.Another scenario: 5Bed & 4bath for $450k and house hack the same way.

Hello, there is property I want bid onWas vacant owned by the VANeeds extensive rehabDoes the VA have any certain requirements before they except a bid?

It's the best way imo of using leverage and not bringing in partners who bring nothing to the table except down monies.

You may have some years you are able to skate by with it, but anytime you have to address the roof, windows, heating, cooling, etc. you're going to be out thousands more.The way you have it structured is the property won't cash flow under any circumstances. 

As long as it is allowed by law-I make no exceptions.

Their circumstances have changed and they need to sell quickly.

I have so far replaced 4 out of 5 tenants and everything has been phenomenal,  except for this last standing family who drive late model vehicles but can’t afford to pay rent on time. 🤔  

Everything was replaced, except the toilet, which seemed to be in good shape.