The drywall inside on the other side of the fire, was undamaged.I also ordered the fire report, from the fire department, that indicated a cigarette, as the likely cause, and noted it's presence, in the area of the fire.So now I have evidence, my tenant is lieing to me.

First question - nobody knows what will happen to the market, if they say they do they are lying. 

This is assuming you don't have $42k lying around to make up a conventional 20% loan down payment, which is really the only way you'd be able to lower your payment from what it is right now. 

@Ryan McGlasson in this business numbers don't lie unfortunately people do.

I do not prefer them in the house - the pit bull in any rental is a not only a NO but a HELL NO.I text the tenant and ask him to call me tonight - he does - I ask him about the extra tenant (step daughters boyfriend) amongst other family living in the house above 18 that is not on  the lease - (I'm thinking in this smaller 3/2 house there may be 5-6 adults and up to 4-6 kids living there) - Tenant lies about boyfriend living there. 

Dont believe the lies that wholesalers only work 4-5 hours a week.

You've already been reaching out to FSBO so it seems that your issue lies with converting these leads. 

Don't lie to get a deal done, and always be fair to the seller.

It is all made up - a lie....Unless he produces the paperwork.

remember advice from those that are all the way across the country may not be germane to your area.. and every county in WA is different I don't know what county your dealing with .but there is a big difference between the urban counties and the rural counties like Clark here in Vancouver is very tough.. go out the Gorge a bit and Klickitat is a breeze.. same with Wikkiakum down river from the couv.. you get the picture.