An MTR would be even easier with the much lower turnover.

If you can do this move in and rent out part strategy a few times, even up to 4 plexus that can be owner occupied, you will be out of the rat race faster and with fewer transactions than if you save up to buy one non-owner-occupied NOO SFR and then another and then another. 

We can probably handle lower LTC ratios than you've mentioned.

I represent private money lenders and do several loan transactions a week.

Fix and Flip loans have a lower LTV, but will loan up to 100% of rehab costs.Hope this helps! 

On top of lower-rent, we have to deal with the bi-annual inspections and other bureaucratic drag from the government.

Returns will be lower and its very competitive but schools are great and crime is low. 

The Leavenworth area is already at it cap and wont be excepting new STR applications until the existing count of grandfathered in STRs has dropped off to be lower than the cap....which wont happen for a long time.

This is another example of why I advocate for tax planning not just transactional compliance work.  

Of course, there is an issue of where do you live for that period of time to establish that you 1031'ed into another investment property...I agree with @Michael Plaks, I don't know how you figured that savings...As for "...harder to sell to potential buyers," the 1031 transaction is mostly transparent to them.