So a 50k loan at 2 points makes them 1k in fee's  that's a ton of risk for such a small loan and if it turtles you can lose half your money in that market no sweat.. that is the other major hurdle. 

I am thinking we would use the equity to put 5% down on a slightly bigger family house for us (with a basement apartment), and then use the vast majority to put 20% down on a 4-plex in a less expensive town within an hour of us.

But to investors, it's become a major expense, and the frustrating thing is that it is an expense that purchases nothing, except to pad the pockets of an HOA.

What are the major things to watch out for?

It is revitalizing and close to bus stop, downtown and 2 major highways.

I am a business major at a local university in the Seattle area looking to break into the real estate industry as soon as I graduate in 2017.

But it is a major risk to have an assistant, because basically any error you make while assisting your sales person will be his responsibility. 

The vast majority of people will pass on this kind of property.

I bought a similar property 3 years ago in Brooklyn and it is cash flow positive and have yet to have any major issues. 

It's off us1 and near another major road but it's almost it's own,cul-de-sac.