The fact that you've overlooked them all in your analysis tells me you're probably not ready to take on a commercial property and it's probably a good thing that you don't have any "skin" to lose on this deal.If you're really set on this property though, you could always have another 20 minute chat with the owner about owner financing.

If they end up in a relationship you may lose them faster than you would with a 3/2 house.

I don't predict a positive outcome and I see many ways for you to lose money, get taken advantage of, etc.

Once anyone "interprets" it then it loses all the value.

If you raise the rent $150 all at once, you'll probably lose at least a few tenants.I would raise rent 25-50 when their lease expired.

I thought we had a deal closed and ended up losing it.

Way risky and a lot of people lose money doing this while a small few make out with the right timing. 

To say the least it’s easy to blow/lose your investment in this area if your not very familiar with the city.Currently, I reside in the Seattle Metro area.

As it is not required, or not a health issue, that pulls me in the direction of not wanting to lose some of my profit (e.g., my family's money) on that kind of expenditure.

Look for the borrower's ability, you will be losing some that's part of it as there is no guarantee in no equity NP seconds, do enough and the winners will hopefully cover the losers.