You already have a property in Seattle, so you know how competitive the marktet is in here.

Everything we've been looking at is mostly South Shore and Bronzeville, but have found the market to be insanely competitive.  

Finding deals is becoming more competitive everyday, but I'm still finding good deals through wholesalers (most often) and sometimes my own marketing. 

Sending out direct mail is fine, but it is a disservice to limit ourselves and not take advantage of writing offers on MLS properties, no matter how stiff the competition is.

Phoenix is competitive right now but there are still deals here, just got a find them the hard way :-).If I can help out a fellow valley guy let me know!

The faster you can turn property the more profitable - AND COMPETITIVE - you can be in the market.On this particular issue, I recommend a few things:1.

There is a lot of marketing competition but if you can find your competitive advantage like @Dmitri L. says, there is plenty of room in the metroplex to work.

The idea is that you pay an upfront option fee (1 to 10% depending on the owners market/motivation/competition) to purchase the house later at a predetermined price while you rent it, usually at slightly higher market rents (& you may be given rent credits for monthly on time payments which will be used for your closing costs at time of purchase).  

We didn't have a lot of competition to buy it at the time.

Welcome Stephen,I like your plan, I'm in the process (accepted offer), of my 1st vacation rental.Here is a link to the forum for VR (vacation home rentals),http://www.biggerpockets.com/forums/530-short-term...You may find it full of useful info as well as reading/listening to anything from Heather Bayer (who has her own podcasts), & Matt Landau.Check out VR listing sites like VRBO & airbnb, if you haven't already, you will see what your competition is doing and decide what amenities you will need, to be competitive (like perhaps a hot tub).