You are bleeding money now, but each year it might actually get worse depending on the financials. 

Maybe I'm no longer a low risk bond investor, maybe I'm parking my money in $VOO instead, CRE REITs, or perhaps higher risk higher return bonds. 

I lost another $1000 in inspection fees but should get back $2000 earnest money deposit.

Also, after a year, the mortgage hasn't been paid down by much, especially if it's a 30 year mortgage.The only challenge you may run into is if you purchased it using a low or no money down mortgage option like FHA or VA lending.

We own our house in Seattle and are trying to determine the best strategy for our move - what approach would net us the most money over the next 1-3 years.

We are considering stepping in and trying to buy the place, but looking for some guidance on STR and what kind of money this place can bring in. 

I've already paid for an appraisal and the earnest money is recoverable.Thanks BP family! 

I would love to talk with a lender to get a better handle on the products that help investors BUT in my strategy, I am leaning toward NOT using hard money at first(if I can avoid it).

In those days it was possible to locate and tie up a “killer” deal, and close the transaction with absolutely zero of the investors own money.

Mistakes I see people make is they plan on living there a short time and over renovate the property where they will never get the money they put into it back.