These are all good options.

Many approach the homebuying process with a research-heavy mindset, wanting to weigh every option before making a commitment.

That’s why you get a discounted interest rate and a lower downpayment, because owne occupant properties are low risk. 

Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

While a western WA deal might not meet some Midwest cf metric like 1%, it will be above the market cap rate or below FMV of comparibles and give you options. 

I’m in the private lending space, so if you ever want to chat about financing options or need a second opinion on a deal, I’m happy to connect.

Also, I've always wondered why arbitragers don't negotiate an option to buy upfront?

Covering the mortgage isn’t an issue, but I’m considering factors like: Multi-Family: House hacking would help offset costs right away, but I’d likely need to put money into renovations upfront.Single-Family: Easier move-in with no immediate renovations needed, plus potentially lower tenant turnover once I rent it out For those who have been in a similar situation, what did you choose and why?

I recommend using a lender that non-reporting to personal credit and can close under the LLC to keep your DTI lower and overall your personal liability profile more bankable.

I do agree with @Jules Aton though, the best option may be to wait and save up for your down payment.