These should be reflected in the purchase price or negotiated as part of the terms, such as the seller carrying some of the renovation burden.Use seller financing to your advantage by proposing a price closer to $225,000-$250,000 with terms such as 20% down, a low interest rate (4-5%), or interest-only payments for 3-5 years, with a balloon payment once renovations are complete and cash flow stabilizes.If the seller is firm on price, consider negotiating higher down payment terms to reduce the financed amount, paired with interest-only terms or a price reduction tied to renovation milestones.Key questions to address include the condition of the septic system, which can be a significant expense if it fails.

Additionally, the supply of homes for sale is constrained because of this and will be for some time putting upward pressure on prices in most markets.Thinking about renting your house in Seattle would be wise as someone else will pay the mortgage down, and rents and the value of the property will go up over time.

The supply of rentals would be impacted, but the final impact will depend on the local market.

I know a few more people who's purchasing with him, from what I hear, every single closing was delayed due to supply shortages or other reason. 

I can't tell the future, I just will tell you markets behave when supply and demand are close(r) to be met.

If they are under supplied then you will draw them.  

Limited labor and resources : Unlike the catastrophic fires in Lahaina Hawaii there are significant resources in Los Angeles to contribute to recover, but quality contractors, tradesman, plumbers, electricians and laborers have long been in short supply.

That gets worse as you get farther out of the cityTLDR: values depreciate, inflation has gone basically nowhere in Japan for a long time, the supply of housing is pretty good compared to demand (unlike the US) and that's because of flexibility with rezoning and development, taxes on rental income are high. 

Combined with increasing supply, what could this reasonably do to MF market and syndications near term, ie next 1-2 years? 

This imbalance intensifies buyer competition, driving up home prices as demand outstrips supply.2.