@Clint Wenk this is not an issue at all. 

@Katelin UhinckIf the commute is an issue you could buy a property that cashflows to go toward personal expenses and still have the long term benefits of having renters pay off the mortgage.

If for whatever reason you waive the contingency, you will forfeit your ability to cancel the purchase contract if there are some serious issues with the home and will not get your EMD back.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Apparently, that unit is being treated for the issue and involves her leaving her belongings (bed, furniture) within the unit to be treated.  

BONUS – OTHER DUE DILIGENCE TO CONSIDER = If there is a wrongful foreclosure action related to this property, it may put you in a legal battle.

I am wondering if any experienced landlords or property managers in Seattle have ever come across this issue before?

Keep an eye on the market, maintain good tenant relations, and consider diversifying for future investments.

It's relatively inexpensive on new construction like that & I can connect you with a great insurance agent here. 

I received an offer that is substantially higher than my asking price from a retail buyer, but the buyer would have a mortgage and need a warranty deed.My attorney reviewed the title search and the county's notifications to lienholders and doesn't see any issues.