2) What can I do in the meantime to increase my chances of the bank saying "yes" when the time comes (if different to a US resident)? 

Now, let's say that the property value increases to 140k after the reno, can I then get any capital to work with if I approach the bank for a cash-out refi?  

For the last couple months, she‘s been consistently coming up short.

I believe the property can use some work and renovations as well as an increase in rent.  

If you improve the property by investing, for example $20 per square foot, what would those improvements bring you in increased rents?

Would a plank with an underlayment handle it better (would increase thickness) ?

That can be increased if needed.4.

All have different guidelines surrounding what you must use for qualifying payments.With deferred loans, however, it's pretty consistent that you must use 1% of the balance as the qualifying monthly payment.One work-around is to go on an income based payment plan. 

Now the increase in fixing cost, re-appraisal, the offer (VA loan), and the supply and demand of market suddenly change.

- monthly dues / trajectory - how often increased?