My suggestion is to build a spreadsheet and include the net cash flow to you for every month of the deal, then use the IRR function to figure out your return. 

They told me they have a few SB-9 applications in process and expect it to take 3-4 months (ADUs they're deciding within 30 days).

Sure enough the rehab ran over budget (we had a large contingency that was used up -- some due to contractor malfeasance, some due to pulling the trigger on big repairs like a new roof) and the revenues were right around expectations, maybe slightly below.  

Trying to figure out whether is it worth transitioning my 2br 1ba 1100 sqft unit to midterm rental from long term rental in Renton WA?

If you're expecting property owners to sell their home to you at a discount, you'll need to earn their trust - whether that be by demonstrating a successful track record with purchasing/selling similar deals OR by meeting them face to face and separating yourself from the dozens of local investors and realtors.Lastly, I'd recommend searching past posts related to this topic as well as checking out books related to your target investment strategies.All the best!

As of this morning, WSJ Prime is 7.75%, so I would expect the rate to be over 8% at the very least.

We are having a hard time coming to a consensus of how to identify, underwrite, and basically take the jump. ( we don't want to screw it up lol) I've searched this topic on the forums but figured someone could give some insights given our situation.

There are so many great local lenders you will have great options for figuring out the best loan for you - you don't *need* to put 20% down by any means, but never a bad thing to go that route if you can.

"pay me double of my expected assignment fee upfront., or in escrow and I will terminate it.

This is expected for the time of the year.Rentals - Months of SupplyAbout 1.6 months of supply for our target rental property profile.