The legislatures continued drive to add regulations for everything will cause costs to increase for landlords.Rents will rise as a result. 

Oregon is 10 in the country for fewest defaults and highest credit of borrowers for homes.. wholesaling would be extremely hard without major budget and you defiantly need to be licensed to sell property you don't own.. state will get all over you if U try the tie it up put it on craigs list or have a website or blast e mails.. one complaint and your toast in that regard.. you need to have your financing lined up so you guy then resell.. flipping is alive and well.. but again much much bigger dollars involved than in GA ( at least most parts of GA... its like working the expensive parts of ATL price wise.although you can still flip in the high 200 to mid 300 range but there is virtually nothing at or under 100k to buy .. lots sell for 100k and over.. rural Oregon will have cheaper properties but much harder to sell with lack of buyers.. but one thing is for sure  if you do a nice job on a flip and price it right it will sell in 2 to 4 weeks at full price and you don't have to worry about folks getting loans and such.. this is not a credit challenged area like much of the deep southas for paid trainers there are good ones and there are tons just selling rehash of those that came before them remember there is not very much that's secret or knew in this industry other than tighter regulations and most guru's are not worried to much about tighter regulation as it cuts down on their conversion rates to the mentor programs as noted above.

I am growing every year but the bank regulations are what they are. 

How are they regulating wether you are owner occupying the property?

If you have all tenants on M2M you can quickly adjust by raising their rents when rates go up depending on your state regulations. 

Burien is one of the few municipalities around that hasn't enacted any further rent regulations on top of state regulations, except for a licensing fee.  

There are SEC regulations that need to be followed when raising private money.

William,Option 1 - pay close attention to the fees and regulations with HOA/COAs.

You can potentially rent it out as a "housemate" listing, or do AirBnB/HomeAway (based on your cities STR regulation).

You need to improve your screening or raise your standards.Tell the upper tenant you will not be renewing the lower tenants lease in April and try to convince them to stay.Give the lower unit the notice according to your state regulations when it is time.Regardless of whether the upper unit tenant stays or not I would definatly not be renewing the lower tenant.