Thank you Eric.In addition to the rental properties, my wife and I have a paid off house, paid off car, and about $1.4m in retirement accounts, brokerages, and savings.We live in a HCOL area and our expenses are $9.5k per month even though we live pretty modestly.I set out initially to have real estate pay for at least some of my expenses in order to give me more freedom and financial security.Is your wife quitting too? 

I think I misunderstand DTI for rental incomes.My DTI goes up with a cashflow positive rental ($2000 expense and $3,500 income).

But a quick google says Jessica Miranda has had the position since April.

Depending on how far values decline is the difference between a partial loss and total loss. in essence its the same position of those who make second loans behind the first or third position when pref goes in front of you..

Additionally, it’s perfectly located with close proximity to both the ski slopes and downtownI received an email directly from the seller saying: 'I have changed my mind about the sale of my home and would like to terminate the contract.'

There is now some positive cash flow (not much considering the value of the asset, but a lot considering where the initial cash flow was).  

Its always nice to hear positive things about local people. 

Every investor is expecting day 1 positive cashflow.2.

Additionally, are there any other factors I should be considering when purchasing a duplex or triplex?

If they are CF positive then they will not cohnt against your DTI but will improve it...that's standard conventional guidelines barring a few exceptions.