Here’s information about an interesting one:“The Dutch city of Eindhoven is to be the first in the world to have habitable homes made by a 3D printer, in an innovation its backers believe will revolutionise the construction industry.Of the first five new houses to be put on the rental market next year, the smallest, with two bedrooms, has already attracted applications from 20 interested families just a week after images were made available.Known as Project Milestone, the development is said by the Dutch construction company Van Wijnen to offer...”https://www.theguardian.com/artanddesign/2018/jun/...

Seattle market is likely peaking,   so if and when you are ready to sell,    it might be the difference between selling as a fixer or selling as move in ready.Besides,  if your house looks better,  it makes the neighborhood look better,  and might attract better tenants to both your home and that section 8 rental across the street next time it turns over.

I guess my other question is wouldn't cash flow potential increase over time as your mortgage cost (the interest payments) decrease and you can increase rent. 

You get 13%.Increased Scale, Less Risk – You’re investing in a former hotel with 23 upscale units and a view of the Cali River.

Then within 1 to 2 years move out by buying another place rent your old place out you lived in and continue to increase your positive cash flow.Remember, cash flow is king!!

I know that increases the payment and adds PMI but I think we could find a program with a reduced or zero PMI option. this would keep more money in our pockets for other investments or rehab work.

It is a Fannie Mae ARM with the first year being X and the remaining term of the loan increasing and becoming fixed by 1% the following year for the remainder of the 30 year loan.

Some of that would also be used to pay the ~$1500 in closing costs on this new loan.I understand that this increasing how much we are leveraged greatly(by 34k). 

Your number one priority should be increasing your income.

When you rely on outside help that may or may not exist, you increase liability.