My opinion is to get it replaced at a fair price and take it out of their deposit.Any landlords from Washington state know if this is possible?

In my opinion, the challenge (at least for a conservative investor like myself) is wading through the "junk" to find the few pearls: high quality sponsors and deals.But before jumping into deals and sponsors, I would recommend taking a step back.

There's just too much risk, in my opinion. 

If there a "Legal Aid" non-profit group in your area maybe you could contact them for free help or contact a lawyer.In my State, I believe I could evict for illegal activity because my lease says that I can.One of the problems with illegal drugs is that the landlord could lose his property if someone is dealing there which is unfair, in my opinion, to the landlord. 

I’ve listened to many podcast, read many articles and I want to know everyone’s honest opinion... actually hoping to hear back from investors that’s been in my shoes at some point in time.

I'll sign an NDA, but an LOI is extreme in my opinion.

Get some other opinions.

I'm thinking of shopping around for another lender but wanted opinions on the financing being offered. 

@Wei Jie Yang - mortgage lenders are typically the best option in my opinion. 

But, Lakewood, Puyallup, Auburn, & Bonney Lake are better for investing in my opinion.