Am I able to show my "cash flow" to a mortgage lender to qualify for a mortgage? 

Based on your COE (Certificate of Eligibility) you could qualify for basic plus bonus and that could be the ‘dream home' consideration (again, if there's a chance to move from in-laws yet to come) and speaking of for first time VA loan usage.2.)

Seeing as how you haven't, you'd have to consult with a qualified professional to see what you can do about it.Good luck.

Could it be they stopped paying rent without justification and won't qualify for assistance? 

By only doing 20 year amortization they get the best long term loan (harder to qualify for).

First, my wife and I qualified for a loan up to 550K; however, we didn't have enough liquid cash for an investment property for a loan of 550K.  

You can deduct your mortgage interest, defer your capital gains indefinitely or even qualify for an exemption on capital gains altogether.

As I read IRS Publication 523 , I believe we qualify for a partial exclusion (not the full $500, 000 of tax exempt but at least for the time we were in the property): Work-Related Move You meet the requirements for a partial exclusion if any of the following events occurred during your time of owner- ship and residence in the home.

Rookie investor seeking advice: Owner occupied property, conventional loan, qualified for 3% DP, sounds like a great deal for starter home buyers with less cash, and allow for greater appreciation for house-hacking owners, but what are the catch 22?

I did a lot of research and I can make more than what I do at a corporate America job it just won’t be the same income each month, like a 9-5 job is.Taking this into consideration, do you think I’ll have less opportunity to qualify for loans since I’ll have a 1099 job instead of a w2?