That rate does not sound out of line for an STR.

Good school as they say lol.

Rents, yes 100% I do adjust billing and it is above standard tenancy rates because they are doing it for business revenue. 

I started off doing long distance BRRRRs until the rates went up.

maybe they would do a subject to and have you take over their mortgage payments - do they have a good interest rate? 

So, comps can help with figuring out local cap rates, then you need the income from the property to determine a value.

Just be sure to factor in interest rates and fees when running your numbers.Know Your Numbers – Accurately estimate rehab costs, holding costs, and selling expenses.

And for reference my sister is dealing with a run down house in Louisiana that has a value of about $95,000 and she shopped multiple policies with multiple insurance companies and the best rate she could get was $2500.

While a western WA deal might not meet some Midwest cf metric like 1%, it will be above the market cap rate or below FMV of comparibles and give you options. 

If the rents are already nearing market rates, will she be able to go up that much?