The downside is that you have to share your home with a neighbor and since most of our duplexes are upper/lower configurations you will usually hear them a little - at least know when they are home.

if there is appreciation, but you wouldn’t sell your current home tax free and buy a neighboring home to rent out, (There by raising your cost basis for additional depreciation and lower capital gains tax.) then it probably doesn’t make a good rental property. . 

Potentially lower down needed of 15% with better rate and 6% cap in IPC’s

I think the economy has a number of diverse employment options, lower prices than King County while still being within driving distance.  

Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

Should I wait for Spring for greater inventory, or for lower rates to see if cashflow improves?

Not only will you not be able to renegotiate after getting the approval, but documentation of condition issues will help you to get a lower appraisal to begin with.Be prepared to move fast after the approval letter is issued.

Lower the price2.

Typically, the adjustments I see on appraisals for basements are more flat rate adjustments. 10k is usually the number I've seen.What stinks is that there are a couple of model types that have below grade space where the builder, I'm sure, was trying to lower the taxes by having it below grade so the county wouldn't count that space in the assessment.

I will be lowering the asking price and seeing if that will help in the sale of these properties.