I’m assuming that this arrangement benefits them over us tax wise.

She can make the distinction between: "I will manage that for you" and "I would *like* to manage that for you" (it's a BIG distinction).And the reality is similar to what @James Wise mentions, PM isn't exactly a high margin business. 

Learn the industry, study markets, analyze deals, invest wisely, repeat.

Should I be expecting them to pay for anything title wise?

Depends on what you are looking for unit number wise and what you want to put down.

Wise words. 

Even converting, cost wise, it may not be worth the effort if the property was not originally a SFH. 

Hi Greg, Check with your local municipality to determine what is needed permit wise.

Am I wise to proceed with cashing out of the Seattle market, using my equity to leverage a bigger investment in Phoenix now, or should I wait a few more years until I am living in the U.S.?

It's always a good idea to know the basics of Property Management, however a lot of information is available on BP and other places, so if you're primarily looking to build your inventory of homes, it's wise to learn how to do deals and start making offers.