The listing says they accept CONV, FHA, VA loans, but because its zoned as mixed use, my understanding is highest and best use would require a commercial loan or something other than your standard residential loan.

Jonmaybe maybe not.. maybe borrower is in default and in lui of foreclosure action the bank accepted an assignment of rents .

Turns out the price dropped $50k to $400k, we negotiated down to $385k and seller accepted our contingency and countered that she wanted a firm date we would list our townhouse. 

I accept that as the reality but then look to ways to devise regulations that are fair to the landlord, who as it's said doesn't get a lot of sympathy.

I'm pretty sure the place would pass a lead wipe test, just looking for opinions. 

We then submitted that pre-approval letter with every single one of my offers that we put in (we're in a hot market so we put in about 5 offers before landing on one that actually accepted).Your offer will seem much more substantial with a pre-approval letter; especially if you're going up against other offers.

Once you have completed the purchase you need to visit City Hall and "accept" the violations by completing a form where they will provide you an affidavit based on the occupancy of the property.If the property is occupied you will have 90 days to address the violations and then you can schedule them to come out, re-inspect to provide you with the CO.

I wanted to pay, but the association said, since I am not the owner, they can not accept money from me.

Talk to an agent.Your priority is not to make an offer the owner will accept, it's to buy the property at a price that works for you.

Our short term goal (6 months or less) is to identify and acquire a rental property, either SFH or duplex, in the Seattle or Spokane areas that will net us an acceptable positive cash flow (we are still working on defining what is 'acceptable' for us).