Together they become a self sufficient entity that financially will support each other when they need repairs and become vacant.

After 35 years of investing and living through three market and one real estate crash,  I have learned that the key is to stay sufficiently liquid (so you do not have to sell during inevitable downturns) and diversify your assets so that you have eggs in more than one basket. 

I feel like I have sufficient funds @100k and a network of private money lenders ready but since nothing can cash flow around these areas, is the only strategy flipping?

Should I get my real estate license and try my luck there or should I keep grinding for 10-15 years until I can become self sufficient with rent?

They have their attorney’s opinion that the foreclosure(s) were sufficient and therefore don’t want to release the deposit.

After you’ve educated yourself sufficiently, go find an area you want to invest in and find an affordable deal.

Side and rear setbacks are sufficient for fire safety.

It you communicate your rental criteria to prospective tenants in advance before accepting an application and application fee (required in Washington State), you would not run into this problem.It's perfectly fine to reject an application or approve it with conditions based on legal rental criteria.You may want to use a standard form, such as an "Adverse Action Notice".Here's some information from the one we use:----------ADVERSE ACTION NOTICEApplicant name ____________Applicant mailing address ___________This notice is to inform you that your application to rent the property located at ______________  has been:[] Rejected[] Approved with conditions:[] Residency requires an increased monthly rent of $_____[] Residency requires increased [] fee or [] deposit of $ _____[] Residency requires last month’s rent[] Residency requires a qualified guarantor[] Other requirementAdverse action on your application was based on one or more of the following:[] Information contained in a consumer credit report *[] The consumer credit report did not contain sufficient information *[] Information received in a criminal record[] Information received in a civil record[] Information received from references[] Information received from previous rental history or reference[] Information received from employment verification[] Inaccurate, false, or misleading statements or missing critical information on the application*If you were rejected based on a consumer credit report, you can request a copy of your credit report for free from the below-checked agency.[] Experian[] Equifax[] TransunionDated this day of ________.Agent/Owner Signature _________

I think we are going to see much more of this type of arrangement going forward as more people "retire" without sufficient planning. 

Zoning should be less of an issue, but given how rural Westminster is, I wonder whether there's sufficient demand for 100+ new homes.