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

Still, I think you'd find it difficult to find one that would be a good long-term investment unless you had another ~20-30 years to go, it's at least cash neutral, and you don't plan to hold it too long (to avoid too much investment loss and before you get to the point where it's unsellable because of too few years left); that's another way of saying that maybe it suits your cash needs in the near-term or is at least less of a pill to swallow than other options until you find something that's more of a sensible long-term play

In southern California Oceanside seems to be an option.

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 promise you will have options once you finish renovating.If you purchased correctly (location & purchase price), you will have enough equity so that you can either sell it for tax free capital gains, cash out refinance (if mortgage rates are lower), or pull a HELOC to acquire your next property!

I want to make sure I'm not missing something.I can withdraw penalty free from prior Roth contributions and 5+ year old conversions, an inherited tradtional IRA, an HSA with prior medical receipts, among several other options.

These are all good options.

I have done my research on setting up the proper entity structure in the US and Canada but I really confused about all the options available LP, LLP, C-corp, S-corp.

I hope this is a help and if you need any help with financing options feel free to DM me.

We overthink real estate...Just find a place that people with options want to live.