This OM uses expense figures that are round and likely not 'current' as advertised.

One of the biggest complaints was the lack of places to stay and the expense for such.  

The cashflow should cove ALL of the expenses for the primary (mortgage, taxes, insurance, utilities, etc) AND put money in their pocket.

Hopefully, not an expensive tenant or Fair Housing lawsuit.100% of what @Travis Biziorek states is true, but he left out a key fact - he lived in the Detroit area when he started investing here, so was able to self-manage and meet everyone he had to hire face-to-face.

I agree with the others here that say you need to have some skin in the game, if you are going to live there yourself, get an FHA loan rather than owner financing, you can get a 3.5% down loan, personally I do not love these as they require  PMI which is an additional expense, and you also need  bring additional funds for closing at least for taxes, title, attorney and transfer fees . borrowing from anyone else for the down payment, to include a personal loan from the bank is not a good idea, those again will be higher int. rate.

You are required to disclose knob and tube wiring to insurance companies. 

The monthly expense payment increases over time.

In your opion #2, would that require you to rent a home in Seattle?

So this requires some upfront planning. 

One is the $10,000 repair expenses.