Numbers on a calculator can only give you a snapshot, it's not always reflective of real life.  

The market rental rate for the units (after repair) is 625/mo, this coming from another building across the street with equal sized, clean, painted, with newer cabinets   The tax assessed value is 72000.Unsure of repairs needed yet but if I guestimate 12/sf i'm looking at about 25000 (I'll verify this before bidding)Comparable sales do not reflect much due to the number of sfh surrounding the property.  

Am I correct that Capex is not counted in the operating expenditure, and as such is not reflected in the NOI? 

The tax is not your responsibility, but knowledgeable IRA investors will want to see the relevant numbers reflected on their K-1s. 401k investors do not present this issue, as real estate acquisition indebtedness does not result in UDFI to Qualified Plans.

There is a promissory note, and a Deed of Trust for the transaction, and if you look up the property in county tax records, she is the owner and his name isn't reflected anywhere.She owes a minimal amount on this home, and if a tornado or fire takes it down, she understands she is not covered, and theory still owes him for the balance, even though he also understands he'll never see that money.What would you do? 

Are there some "more experienced" investors who maybe have been through multiple cycles that can reflect on today's market?

I agree that this doesn't reflect the overall Seattle market.

So far, they've not missed a single (modified) rent payment and their lawyer has confirmed that the settlement amount he is working toward has already been modified to reflect that the first check cut from the settlement will be coming my way to pay me in full. 4 months from now, I'll have either dodged a large bullet or will be crying in the new year for my failure not to evict sooner. 

The August 1st property tax bill reflects the empty lot. 

Bankruptcy does not necessarily reflect the person's track record or ability to pay.