I’m getting ready to make my next move in 2025 and I’m contemplating on staying here and buying a multi family property as an investment out of state (only an hour away) which would be a lot less capital and have a lot more land lord friendly laws or buy another multifamily as a primary residence locally and hack that property I’m single and live alone.

their threat demonstrates their ignorance of the laws and expectations.  

The story was she rented the place in the 1950's, under rent control then under rent stabilization laws.

But it’s a bubble and they are making a lot of changes in the laws to continue that bubble.

As a new owner, you should confirm if you can raise the pricing on the rent, and do that accordingly to the laws.

.: Quote from @Charles Perkins: Washington law gives tenants the option of paying the security deposit over several months depending on the lease term length. 

There is a lot more state regulations and lending laws change when 5 units or great.

I would believe so, but it is always good to check the local laws.

If it’s not required by law, you might ask why it’s being done now and if there are alternative ways to address the concern.Going forward, consider setting a clear spending threshold with your property manager.

Check your local/state law.