This way all of the money from rents can in theory avoid income taxes legally.I try to be conservative and use 1/4th of the cash flow received to fund the contract while keeping the rest for reserves.

And there's a fat upside to those rents as leases expire, because those are WAY below market for that area (about 300 a month each).Sound like a deal, or am I missing something?

In our industry, it means a person who knows how to work the system, not pay rent, and stay in a unit legally as long as they can.

As someone who doesn't have any connections in real estate I would like to began to build my network and also profit at the same time while learning as much as I possible can in the process .

Here is a link to some VA loan info from military.com-http://www.military.com/money/va-loans/home-purcha...I recall as long as you do not exceed the total amount guaranteed by the VA loan, you can in effect have a second home.

The other contract does not have any language that does...which means that the seller can in fact back out.  

@Frank ChinThe answer to that is a big fat NO, which makes this seem even more like harassment and knit picking.  

These are fully underwritten, with appraisals, underwriting your income, etc etc.If you want to hack the system the way I did, you jack up your purchase mortgage interest rate, take a big fat lender credit associated with that jacked up rate, and do the VA IRRRL exactly at the six month mark.

@Ron Hayworth I try to learn as much as I possibly can in my down time. 

(pigs get fat, hogs get slaughtered was the mantra I adopted)...My realtor, an experienced, graying real estate veteran and I looked at each other.... we both knew this market would not end well and could not go on forever.