Need your opinion about this deal in Seattle

[Eugene Cho]

Hello BP Investors, I am trying to get started out on my first deal and need some guidance. My wife and I recently moved to the Seattle area and are looking to buy a property that we can house hack/Airbnb. We came across a property in Montlake that is in pretty bad shape, has foundation issues, and would be a complete reno. I ran the numbers assuming we rent out the basement and live on the main floor. Our monthly out of pocket would be $2468 to make up the difference. Can someone please take a look at this analysis and let me know what you think or if i'm missing anything? Here is a link to the doc.

https://drive.google.com/file/d/1hz-V-Sp7Ma1pFDSGVgg74z4CU9lElZBO/view?usp=sharing

Does this deal make sense? based off these numbers, I dont think it does. Our agent, who has done several flips before, estimates the rehab costs to be $200-250k. So much of my cash would be tied into this house, plus FHA loan, that I wouldn't have enough to buy a second property, which I would like to do in 6 months or less. Here is my dilema: if I buy a property using either an FHA or conventional loan and fund the rehab myself, all of my cash will be completely tied into my first property leaving no room to cash out refinance to buy a second property. So what do I do? Rent in Seattle, and cash buy properties in cheaper areas? What are people doing for their main housing? Thanks for your input.