Options for risk averse VA parent?

[David L.]

TLDR; VA Dad wants money during his retirement. He just wants the cash and for me to burden the means of getting it, lol. Any way to do that?

So my father is approaching his 70s and is a veteran. He has no debt and currently owns his home free and clear. I was wondering whether there was any creative ways he could utilize his ability to use a VA loan to bring in some cash flow for himself. He's expressed desire to have some additional funds during his retirement but he really doesn't want to deal with picking up new liability, etc. He just wants the cash flow and to hand me the property when he's gone.

The way I understand VA loans, this is a high level of what can be done:

1. Get the loan.  
2. Live in 1 year. 
3. After 1 year, can rent out.
4. Collect rent, do bucket list, kick bucket, give home to kids.

There are a few things that he would want to avoid, so my questions are:

• Any way around him living in the new home?  He likes his current home.  Can he just leave the new one empty or something?
• Is there a way that I can be on the loan so I can help minimize the debt and risk to him? I understand that we would have to put down 12.5%, but he's afraid that I'll die (gee thanks) and he'll have to pick up the rest of the mortgage afterwards.  I suppose at that point he could just sell.  But just wondering if there's another way to minimize his "involvement."