Not following the requirements (within Seattle city limits will likely have additional rules and regulations) opens the seller up to liability.Additionally, the seller always has the option of offering "cash for keys" arrangement but be sure that no funds change hands until after the property is vacated and locks are changed.John

And yep, I was made aware a couple of years ago of that 12 person max and/or I think 4,000 sq ft limitation (or some size anyway) that requires a sprinkler system for all new construction.I don't think they're that wrong for implementing the requirement. 

There were challenging grading issues and limited access from the street to bring in utilities.

This is actually something I see as a benefit because it shows that the city is interested in facilitating the growth of that industry, and it's much less likely now that they would do a 180 and try to limit usage

You are currently sitting in Los Angeles's entertainment mecca and Mid Term rentals/30+ day rentals are a great alternative to the STR limitation.

I am somewhat limited with time but have right mindset.

It's also not going to scale as you'll quickly hit DTI limits even if you can get the numbers to work.

We got some limited engagement but no real leads.

The city has issued licenses, they are just very limited, hard to get, and there are a lot of restrictions around how it can be used. 

You can by a resale (but supply is limited) or you can buy a house from one of the rare villa developments.