I love the Spokane area and see a ton of opportunity in the area long term.

There is still a ton of opportunity in Portland in my opinion. 

That's #1.Secondly, what is the opportunity cost?

You're in one of the most expensive areas in the country to invest...the Midwest is still filled with opportunity. 

I have an opportunity to buy a 2/1 renovated property  for 120K with projected rental income around 1250. 

I don't want the deal to fall through, but I'm also not going to take on these huge costs and we're providing the seller the opportunity to finance their build (while letting them live in the home that I planned to use as my primary residence.)Any advice on what we should push back with? 

I will have missed out on a LOT of exponential growth opportunity.

I'm looking to learn from others that have taken the landlord approach on either SFH or MFH as their first acquisitions and what are some of the pitfalls to look out for.My background, I'm an Army Veteran that left that world to seek out new opportunities as a civilian.

If after you run the numbers, your monthly out of pocket is cheaper than renting then this is a good opportunity to get started.  

REI isn't a dart board, with decisions based on scattered opportunities.