Start working towards a 5% down payment so you can house hack a MFH.

We are thinking of adding more in the future depending on the relocation plans.Buying a new property in Seattle will mean a new mortgage for 30 years and very likely incur a high DTI with high monthly payments.

It's near impossible to cash flow when most homes are selling for above $750K, Taxes and Insurance added in the PITI payment is higher than the rents.You can buy a Duplex 2 unit for example in either FL, IN, or OH and not pay more than $200K the rents are typically $1200-$1500 a door.

Ultimately, leading to issues down the road (eviction/habitual late payments)

Until the house goes through the foreclosure process, I am making monthly interest payments.

Find a down payment assistance program and see what that looks like. 

Most lenders I work with would lend you 70%-75% of the value of the property, but only so much that your NOI/profit is 20%-25% of the monthly loan payment.

It's not that Stu has tried and failed with this asset class, but he is pointing out that you have very preliminary understanding of investment principles and should look to expand your knowledge before being accountable for OPM. the fact that you're confusing mortgage payments with T&I impound is indicative.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

Right now, you have to be able to source off market properties or be willing to force cash flow with large down payments.