So if the multiunit property is the SFH loan limit you should be okay to purchase but you will need to live in one of units.

Is it an LLC, a limited partnership etc...

They do not want to owner finance it and then new owner runs it into the ground and they have to take the property back worth less than when they financed it.You have to be careful on giving full guarantee on  a project if you have limited experience just to get into a deal with owner finance.

There's definitely cash flow ops, but obviously appreciation is pretty limited. 

If you only have a couple thousand in the bank, you're pretty limited in what you can do, unless you find the alternative financing options that so many on these forums discuss. 

I would recommend you talk to @Tim Swierczek about financing options, most people finance their first property under FHA which is fine however it may limit your ability to expand. 

I am not limiting myself to Washington, if there are good deals in other market areas I am willing to check those out!

Hey @Paul Zackey and @Alex Cornwell,I have Limited experience, but I know a few contractors who do it (I cant personally reccomend) and a mortgage officer who is very familiar with them.

So after you're done rehabbing, if you transfer title back into your name, you'll have to wait an additional 6 months (unless you want to be limited by the purchase price as your value).

In the Denver area the trend is for the larger municipalities ie Denver and Aurora to limit STR to primary residences or stays or 30 days or longer.