The fact of the matter is, the bigger you are, the more respect you command.

If that doesn't work, move up the proper chains of command in the city (city engineer's boss/head of DPW, etc.). 

Does it require repairs and renovation before commanding such a high rent at that purchase price?

If your command is across the sound from Seattle, you should actually be considering Bremerton for a place to live.

From an ROI perspective, I currently rent the unit for $525/month and with the 2nd bedroom and renovations, property manager thinks we can command $800/month.

My thought is if you have little to no experience and no money ( even if you have good credit) then you tend to have very little value to offer and can't command  half.In those situations you take what you can get as the person with the money is taking a higher risk with a newer investor versus a known investor that is very seasoned and experienced.Once you start getting experience then you can start looking for better sources of capital or renegotiate split of the next deal with current investor once showing a positive track record of success.  

For me, I like to buy and rent to military personnel because I know that they have a guaranteed housing income (unless they get in trouble at work or something and get it taken away) and will pay on time or my property manager can just contact their command.

when it comes to buying rental houses in the quote un quote cash flow markets.. these markets are pretty much all interchangeable.. rent rates pretty consistent  with about a 1400 to 1500 cap.. higher than that and most will buy.I think for quick math for out of state folks so they don't get lured into properties that are ONLY appropriate for local tough as nails landlords.. you simply need to look at the median price of the area.. then buy within 10 to 20% of that.. and also only buy were the rent commanded is within 20 to 25% of the top rents in the area.. 

Next, if your unit is exactly the same as a unit across the street, but he tenants pay water/sewer/trash there, then technically your unit can command higher rent because there are more fees included.

Hello KenIf you have a Windows operating system, you can use the Snipping Tool.If you have a Mac:1] https://support.apple.com/en-us/HT2013612] Command+Shift-4CheersRobert