I have used Equity Multiple and I have not had any issues to date.

Is it worth diving into a full bathroom/kitchen gut (unpermitted/handyman not of my choice) possibly revealing more issues or just paint, new cabinet pulls, switches/outlets, lights, etc?

I'm not an attorney and Washington state law is a real pain in the a$$, so I'd recommend contacting a WA attorney that works with investors such as : http://www.seattle-realestate-lawyer.com/Do you have any "boots on the ground" in WA? 

The real issue for buyers looking for LTR, cash flow even with a good deal is hard to pencil out to be in the green.

Understanding the laws and regulations in your state is crucial when it comes to managing your property. 

Looking for laws and best practices around it but I am seeing conflicting things.

Any advice on this issue is greatly appreciated! 

Never had an issue in the past with getting title insurance.

I would just find out what the laws are in your area to now renew him and serve him with the proper notice.

It's likely best to jump on the phone with an expert to discuss this, but I'll leave a quick description below:Owner financing is a tricky issue for tax purposes.