They are usually looking at higher quality deals where cap rate is lower but with value add and rent growth they can blend higher in a short period of time.

When you house hack you are always blending your living situation with your investment, so you sometimes have to sacrifice a bit on one or the other.

You'll likely end up with a blend of each. 

Unless a heavy value add deal to blend the cap rate up those loans are ticking time bombs because you could be in  a force sale or refi situation in an inopportune time in the marketplace cycle.

I chose Maine earlier this year as a blend between cash flow and appreciation.

You can still get a nice blend of cashflow and appreciation potential in the Greater Seattle area market today.

This higher end CHA tenants want to do nothing more than blend in with the community especially if they are in an area filled with many more market tenants.   

It's a case by case basis based on the tenant and what the lease rate is compared to market along with rent increases for the overall blended return to the landlord.If for example I have a Pizza Hut and is a corporate guarantee then the store could lose 30k a year and I the landlord still get paid like clockwork the rent.

And especially for the visual :) I had already painted the garage door a tan(ish) color to try to make it blend in more-- do you think I should go back and try white instead?

You want to blend in.