I have been pretty active in the Sedro Woolley area as a RE Broker over the past two months.

yea thats a good bet...  

Flipping is a great way to build capital, but it's risky, hard work and active income.

Not sure what your payback will be if you rehab, but if tenants come and go, I bet they will be content with clean, functional and fresh paint in a light color.

You need to decide a few things first, like whether you want to be an active investor or a passive investor. 

I like to utilize these tools when I am doing "mindless activities" such as washing dishes, getting ready for work in the morning, driving around, etc...My last piece of advice is find a local REIA which is like a real estate investors club.

Aka any investment here, within reason, can be a safe bet. 

Dont bet on the market, bet on a variable you can control like property management, proper maintenance, well screened tenants, etc.

Mine is 15.92% IRR while you indicated Frank gets 16.17% IRR.It's not that far off and I bet the numbers are a little different because Frank maybe adjusting the Closing Costs a little bit down because the Price is lower.

After the PMI drops, I'd cash flow only 140 per month (again after all expenditures).I know I can't bet on appreciation, but am I wrong in thinking it could be a good idea to hang onto this place for a bit?