Should I try to negotiate the deal and wholesale it with the $1000 coming out of my cut, or should I give the lead to my agent and try to work out a "finders fee" or something in the sale of the property?

You each have more protection for yourselves but also increased risks if things don't work out between you.

If it doesn't work out, they don't get to keep my darn EMD.PHEW.

You’ll learn something here and when you find the next deal, it’s clear you’re not afraid to pull the trigger, I’m sure things will work out.

All around this could work out very well for you.    

The fact that Seattle is very hostile to landlords right now (various existing regulations) and would pass rent control tomorrow if it were legal statewide  (wait for next WA legislative session... we will almost certainly get something like what OR has and CA is getting) should be foremost on the minds of anybody looking to take advantage of this as well.

If Cashflow numbers work out that could be an ideal cash on cash return on single family house

Has anyone does this, and if so how did it work out for you?

@Bill Brandt but sounds like that may just work out thank you for your answers

That didn't work out well.