When sending these violation notices I have still collected rent and that doesn't impact my ability to evict.

CA should give you more appreciation long-term plus your equity pay-down on an annual basis will be huge so the overall impact to your net-worth on a CA property should be similar, if not higher to what you would get out of state, you would just sacrifice on the cash flow front here in CA.

However, without a pro forma that accurately estimates all expenses and impacts to income, you do not know your true cash flow (in your case negative in all listed cases).  

After that you'll be able to get permanent financing.

My goal is to have options till my husband is ready to permanently retire. 

Well, we'd love a lower budget/DIY option, but would consider patching over it for a bit until we could save enough for a better or more permanent fix.

Here are the details:-2.25 acres 2690 sq ft house Snohomish County, WA-Current Loan Amount (construction to permanent): $320000-Current amount drawn on the loan: $78400 (includes $9000 loan fee)-Interest rate: 3.95% ARM-Land Appraisal March 2017(bought outright with cash October 2016): $115000-Completed Project Appraisal March 2017: $525000-Current total yearly income: $92000-Total monthly debts: $240 vehicle loan(owe $5000, we can pay off if debt to income is an issue)-Cash in account: $22000 (We just put $17000 into firing builder/ foundation work out of pocket into the project)-Cash remaining on loan: $241000-Estimated amount we need to complete: $280000 minimumWe believe the project will appraise for $580000-$625000 currently based on redesigned plans (added 200 sq ft) and new comps in the area we are building. 

I'm wondering how the University impacts the rental market there especially since students are almost 1/10th of the cities population.

I wouldn't imagine that it would matter but just covering all my bases.No, that would not negatively impact you or the plan I suggested.

Particularly in the Tiger Rd area where it isn't in the heart of Breck, but those larger houses are being impacted.