I figure some of the properties that I run into ppl may be underwater on their mortgage.

$300k is my top range, or multiple cheaper properties. 

So when sellers state that they don't want to tell you details about their property they want to sell (ie, the mortgage balance), and they just want an offer.....what do you tell them?

It seems like the ROI on the $23K is not that much, but on the other hand, I am  buying the condo below market value, which I could sell in the future.orShould I buy an investment house on a mortgage loan?

After all expenses including mortgage, insurance, water, property management, cap ex, turn over, everything, I'm making $2,000/month which is 15-16% cash on cash return.

I agree with your approach for secondary suites, it's a huge help for you and your growing family to have someone helping you with the mortgages. 

If you do go for it, keep talking to banks periodically and work towards getting a conventional mortgage.

How do I find a list of those homeowners who have been delinquent on mortgage payments.

There just aren't a ton of MFH on the market for a reasonable price2) Investing out of this market (say, Spokane, where its cheaper) is hard as well because I have to purchase and manage a property that is hours away by car, and this being my first investment, I'm not sure how well it would work to be so far away.So I'm sort of generalizing my concerns, so maybe someone has suggestions on how I can achieve #1 given my sitation.This leads me to this idea.  

My broker is associated with "Movement Mortgage" and I decided to talk with them and use them to try to get my pre-approval to purchase my first property.