I'm in the Seattle area, too, and I agree with some other local investors that finding cash flowing deals in Seattle proper is very hard right because it's such a high priced seller's market right now.

My county population is only 19,000.So, i have been finding other ways to build my buyer list for my county and working with my friend, he does his own rehabbing in Hardin county, ky - E-town.

More specifically, I'm trying to see if I can properly leverage a new Coverdell ESA IRA for each of my 3 children ($6000 per year) and use a 100% return as distributions for a private school within the next 4 years.BTW, Thanks again for the explanations!

Any ideas on a good way to make this function properly? 

Does anyone foresee any issues if I stay in my current place until the end of May and move into the new place after that.I plan to take out a 203K loan and fix the place up so it's unlikely i will be done by  June anyway.My agent seems to think that the owner occupier requirement also implies that you need the place; i,e don't already own a house but i can't find any such stipulation anywhere on the FM website.Any thoughts?  

This is not to say that it is an excuse to be reckless and not maintain proper cash reserves.  

Is my understanding correct that each of our share of income and expenses should be reported on our own Schedule E forms?

From my experience clients are very rewarding experiences, as you get a chance to bring someone else's dreams come to life, personally I love to take them through the process of a full renovation, everything from rendering to build, however, if you are not built with the proper infrastructure it is incredibly time consuming and administratively intensive.

Many small time land lords just don't have the resources to dedicate to get proper tenants.  

I am looking to find the proper resources to answer my questions and guide me in the right direction so that I can begin a venture of investing.