They left their equipment in our home for weeks on end and installed extra equipment that they didn’t use.  

We totally get the premise behind the Brrr method but at the same time, if you can utilize the same cash principle to buy a bigger, better rental house that will appreciate well over time due to location, wouldn't it also make sense to consider using the cash house equity for this bigger location house to be refinanced later at a lower rate and take the equity out of the better location house then and use the equity later?  

(Turning it in to a rental makes those gains taxable and will probably take a decade just to break even on taxes.)2) This is the ideal rental you would buy if you had the cash in hand instead of this home?

I think the trick to Denver for most people is to buy something you can afford, grow your W-2 income over time, and turn your primaries into rentals whenever it makes sense to do that, rinse and repeat until death. 

If so, you may be able to buy the land and do the build first and then do the exchange afterwards.

I responded to her FSBO ad and made my offer which she happily accepted: a 36 month lease option; I'll bring her mortgage current, (1 month, $800), and continue making the monthly payments; option to purchase price of $88K, (my estimate of value, $100K); and I had the right to buy, sell, sublet, or assign the property at any time during the 36 months.

Investment Info:Single-family residence buy & hold investment.

I am exploring various markets to invest in for long term buy and hold rentals.

Investment Info:Small multi-family (2-4 units) buy & hold investment.

You could refi your current VA loan and switch it to conventional and restore your entitlement to buy a new home.