He cut me off and said "yeah F Off".   

No cutting utilities or any shenanigans like that. 

But getting into the house hack as soon as possible is also important in cutting your expenses.I vote for using your FHA loan on the multi-family rather than a single-family (preferring strategy 2 over strategy 3).

@David Coughlin Old homes are great to cut your teeth on, given you have enough liquidity and go in knowing extra repairs can happen. 

Who knows when the next pinhole leak will happen and if you have one with a renter here, they're not as forgiving or as understanding when you have to cut up some of the slab or take out the entire ceiling of a bathroom.

We see lots of price cuts and homes sitting longer and longer on the market

If grandpa can offer you owner financing, or a price cut, and the market there is pretty strong, you should consider buying his house.That said, the Seattle market in here is a pretty strong rental market.

I forwarded it to the PM and they immediately got back to me and stated that they would contact the tenant, and if the tenant didn't cut the grass in time the PM's crew would take care of it.

I intentionally looked for 3+ bed SFHs to rent out the rooms and cut down my mortgage payment.

I always hear about how there was blood in the streets, massive vacancies and rent cuts in Vegas during the GR.