A full description can found in the RCW itself and the subsequent Washington State Supreme Court Opinion on the Washington State Legislature website and linked below.Attorneys tell us "the penalty for engaging in a "pattern" of equity skimming that is set forth in the Distressed Property Conveyances Act is found in RCW 9.94A, as a Class B Felony, Level II offense", which can include confinement in a state correctional institution, fine or both.

There's no reason to not still require the standard month in advance, and then each subsequent fortnight you could get 1/26th annual rent (rather than 1/24th).Or, if they prefer to pay the 1/24th fortnightly, why not give them the 12th month "free"?

If they want to negotiate a payment plan or decide to push back, you can deal with that in subsequent letters.

@Dave Chapa this contract is structured so that they collect the rents and all subsequent late fees.

This would protect the LL if a subsequent resident requested an ESA. 

I called them and subsequently called FHA who told me to call my current lender but also gave me advice that led to my same conclusion:All FHA AirBnb rules seem to be specifically geared towards my unit that I live in.

I had about 30 million in credit facilitees with banks at 6 to 7 % and lent it out at 20% apr and made the delta.. we did pretty good until the market cratered .. then it was OH boy.

So if you purchase a value add with your exchange you can't subsequently use exchange funds to improve.But, if the numbers work you can use a process called a reverse exchange, or more specifically an improvement exchange. 

What happens to the remaining debt if the 1st lienholder (or 3rd party bidder) takes back the property in the subsequent foreclosure? 

Conventional financing has very specific rules to follow and falsifying information on the application to get a better interest rate or to qualify and then subsequently closing on the property is a really big deal.There are loans out there that do not require seasoning of funds, would allow your friend the investor to not be on the loan (or be on the loan if he/she wants depending on credit), but it's not a conventional loan and the interest rates are not conventional interest rates.