In its current condition.

It you communicate your rental criteria to prospective tenants in advance before accepting an application and application fee (required in Washington State), you would not run into this problem.It's perfectly fine to reject an application or approve it with conditions based on legal rental criteria.You may want to use a standard form, such as an "Adverse Action Notice".Here's some information from the one we use:----------ADVERSE ACTION NOTICEApplicant name ____________Applicant mailing address ___________This notice is to inform you that your application to rent the property located at ______________  has been:[] Rejected[] Approved with conditions:[] Residency requires an increased monthly rent of $_____[] Residency requires increased [] fee or [] deposit of $ _____[] Residency requires last month’s rent[] Residency requires a qualified guarantor[] Other requirementAdverse action on your application was based on one or more of the following:[] Information contained in a consumer credit report *[] The consumer credit report did not contain sufficient information *[] Information received in a criminal record[] Information received in a civil record[] Information received from references[] Information received from previous rental history or reference[] Information received from employment verification[] Inaccurate, false, or misleading statements or missing critical information on the application*If you were rejected based on a consumer credit report, you can request a copy of your credit report for free from the below-checked agency.[] Experian[] Equifax[] TransunionDated this day of ________.Agent/Owner Signature _________

My theory: A high market in an already expensive area such as the Puget Sound in Washington State means the ROI of repairs is abnormally high, making it worth it now more than ever to seek out the worst condition properties. 

If you aren't grandfathered/registered as of July 2018, you have to go through a Conditional Use Permit process, which is unlikely at best, UNLESS you are in Sandbridge. 

Well, there's a lot of questions you should get answered regarding the condition of the buildings and the existing tenants on time rent paying performance.

If anything was left by the tenant and later found, it shall be stored and/or disposed of by the landlord as per law.Security Deposit: As per agreement and as required by law (RCW 59.18.280) within twenty-one (21) days after the termination of the rental agreement and vacation of the premises or the landlord’s learning that the property has been abandoned, the landlord shall mail to the tenant’s last known address a full and specific statement of the basis for retaining any of the deposit together with the payment of the refund due the tenant under the terms and conditions of the rental agreement.

@Dominic FlintWith a condo you need to check the financial condition of the condo association, as well as determine if a large number of units are owned by one person, because then they will control the association.

Home value is about $260 with payoff of 72k.Question - what strategy can I invoke to come out ahead and possible buy/sell and effectively live rent free? 

I did cancel the eviction on the condition she move out on Dec 31. 

Your contract requires the seller to “maintain the property in the same condition as the purchase contract date.