The only other option I see is a short sale, if you don't need to purchase for a few years and don't mind a temporary credit hit to save the $60k.  

Typically, the investors I work with purchase properties in their personal names and then quit-claim the title into their LLC after the deed has been recorded.Markets like OKC, Memphis, and Little Rock offer some excellent, affordable growth opportunities, and I’d be happy to chat with you to explore these options further.

I think the economy has a number of diverse employment options, lower prices than King County while still being within driving distance.  

As others have suggested, you could get a conventional or FHA loan if you want lower down payment options.

We take your info and we let Lenders battle for the deal offering their best options.

With a family and kids the best house hack is a house and cottage or duplex option.

What are other options do we have if we don't have piror experience? 

I work with investors out of the country and have a few contacts I can connect with you on funding options. 

Is there a month-to-month option?

Quote from @Samuel Pavlovcik: @Nicolas Tow Your Architect is correct that it sounds like the only option for you would be to obtain a Zoning Map Amendment to change to RT3.5 or higher.