With the assumptions that we have a decent income ($90k) and we would have to put down less than 20% (also assuming lending will loosen a bit from current crisis)Apologies on the confusing Q.

I think as we get a few more projects under our belt, these other local banks will loosen up on those requirements. 

Do you think Seattle will loosen the rules for Landlords in the future? 

I just know that each time I loosen my criteria and require fewer distress indicators, my ratio of leads to deals will expand and will require more capacity to work thru them all.  

Estimate for repair is 10-15k.Damage to the siding, potential pest infiltration, they did not inspect for pests (If I think about moving forward with this I'll get someone to look for this)Furnace+water heaters are on their way out -- 15+ years old for furnace, 10+ years old for water heater.Sagging floors in basement, inspector said that was common in buildings of this age.Loose toilets (makes me worry about water damage in the bathrooms -- those bolts don't loosen up on their own normally...)I'm leaning towards passing on this, but I'm not sure...I'm worried about the potential for major problems in the coming years.

Im hoping 2017 loosens up a little bit and more deals hit the market. 2016 was tough finding deals like past years around here.

The first deal with them is very tight but afterwards it loosens up.

Do you think vacancy will increase as lenders start to loosen up?

I didn't reply to this immediately, as I had to think about it awhile.After pondering the topic over the weekend (While I may or may not have had a few libations to loosen up my thinking muscles), I came to the following conclusion:1) Tell him to get lost.2) Realize that what he's doing is asking you for an nonspecific change order because he is over budget and doesn't know where.

The same problem caused a receding of prices, not a correction, as sellers were forced to lower prices or become landlords, simply because there were fewer buyers able to qualify in the new world order.As credit loosened and banks began originating again, prices began increasing much faster than the normal average of 3% - 6% appreciation.