I agree with many of @Alan Asriants' points, especially when considering OOS Sec. 8 investing.A lower price point or smaller investment doesn't always mean low risk.House-hacking locally could be a better transition depending on your goals and situation.

I certainly know that future years the expenses won't remain that low, but wouldn't that be a reality on a property that has a lot of recent improvements?  

If you're locked in at a low interest rate, it might be worth keeping.

With most products their is a place where this makes sense, but in my experience there is only 1 with this product Right Way = Pretty low credit score and cannot qualify for a traditional loan to access the equity and you need the cash fast Wrong Way = Any other reason than the above. 

HUD loans will take drastically longer (I've never used one personally), but there can be benefits to using these loans if you're a long-term owner.The interest rates in your Key Considerations seem very low for agency loans and they're definitely low for bridge loans. 

and even then the return will be fairly low based on the risk you're taking on. 

Xeriscaping (low-water landscaping) is increasingly mandated in many HOAs, and buyers are scrutinizing water-hungry features like traditional lawns.Rising Construction CostsMaterial costs have fluctuated significantly, and labor remains tight in the Phoenix construction market.

I've also assumed VA loans where little cash was used (seller had low/no equity).

Short term (12 months), low loan to value with borrowers who have strong credit and significant assets.

Is it possible to buy a property in Seattle low enough to get 1%, yes.