With an increasing demand for affordable housing options and steady population growth in the area, small multi-family properties are becoming attractive investment opportunities for investors looking to diversify their portfolios.Spokane offers a unique blend of urban amenities and outdoor recreational opportunities, making it an appealing location for tenants and potential property buyers alike.

I am curious what options are out there.

Rates on 15 year fixed mortgages, which can be popular refinance options also eased to 6.13%. 

There is no third option.

Agree with @Mitch Messer, there's ZERO positives for an owner to tell a tenant they're the owner.My boss had an evicted tenant's biker gang show up at his front door, back when he used to disclose he was the owner.Have posted this story several times and no one ever has a great response to it!

You still might be able to get the building insured for under $300/month but options will be very limited and coverage reduced for any property with knob & tube wiring. 

All I have to say are positive things about my experience, and everything JT has taught has been right on!!

Some buyers do utilize second home financing options to secure their vacation property, which is nice because it allows the applicant to go up to 90% financing on a full documentation loan. 

The STR rooming house would work, in theory, as a budget option for traveling going through town.

in my experience the longer you wait, the better terms you'll get - after 90 days more options, after 6 months more options, etc.