But if I were in your shoes I’d weigh a few different options.  1) you could refinance your existing property and pull out a bunch of cash and use that to pay for additional down payments. 2) 1031 exchange into a larger 5 plus unit. 3).

When I initially challenged that fee, Lender did say that he may be able to lower it but  first would need all the paperwork done, credit pulled, etc. 

I don’t think I’ll ever see some pulling that off again any time soon.

If I understand you correctly, you are advising a sort of modified brrrr strategy - modified since these houses are owned already but strategically pulling out a conservative amount of debt.The houses are mostly C class but some border on B-.

My back-of-the-envelope math shows a potential ROE of <6% (assumes pushing rent, 50% expense ratio, and 20% down at purchase).Pull your capital and use a 1031 to get into a MFR that will provide better returns.

Also, be certain to pull the appropriate permits and have the required inspections.

Most investors don't pull out 100% of cash invested most of the time.Having a narrow business model like Jason can work if you get enough deal flow. 

My intention is pull some cash out of our market funds and start off by buying a SFH buy and hold property.Absorbing all the information and formulas though it's become pretty obvious to me how difficult it is to meet the 2 (let alone 1) percent rule in the Seattle area.

Don't let your fear stop you from pulling the trigger.Have you made mistakes on this deal already.

:-D I closed a few weeks ago on 128 Beaufain for a new build.. as well. and my bank pulled up an old article of that one having flooding issues at king tide.. so we did fill the lot a tad..