The seller needed to sell quickly due to personal reasons, which allowed us to negotiate favorable terms.

My personal motivations and limitations have made me not consider turnkey, flipping and house hacking. 

Have had it happen in personal houses before, it was usually due to humidity in cities with high, high humidity. 

Anyway the point on the land basis is if you have a very low basis you have just now subjected your land equity to ordinary income and market risks on top of it.Plus personal risk on the loan if it goes bad do you have the money to pay the first off if you need to.  

Obviously the key to a successful flip is to find solutions for the distressed person. 

While 8% is pretty hard to come by for the average person, there are plenty of other options in the 2-3% cashback range for all purchases.

There is no shortage of renters out here and Section 8 is my personal favorite for my own properties.  

Personally I’d sell, if the capital gains after selling costs exceed $80k I’d consider a 1031.

Have you all personally used them and tried them in Seattle? 

Wouldn't invest in that area, personally.