He offered to sell it to me with owner financing for $400,000 and only required 10% down, so I jumped on it.

Until the conditional use permit is applied for, an operator of a short-term rental is required to apply for a short-term rental permit.

@Crystal Wilson Do some states require you need a agent?

They require 48-72 hours notice to schedule anything onsite so we've been waiting 2 weeks now for a Section 8 initial inspection date to be scheduled by them.

Selling below FMV treats the difference as a gift, requiring a gift tax return (if exceeding $19,000 in 2025).

Additionally, lenders may require a release price (a specific amount to pay down the loan) for each property sold, which can complicate the strategy.It’s worth discussing these details with a trusted lender or mortgage broker to ensure the plan aligns with the loan’s terms.

In your opion #2, would that require you to rent a home in Seattle?

The only reason I got an LLC was to buy a commercial property because it was a requirement of the lender.

There are also 'mezz' lenders (typically for larger transactions) who will cover up to 90% CLTV and require you to bring the remaining equity to the deal, and additionally there is Gap Funding in the form of unsecured personal debt.The latter can potentially be the most expensive option, but allows for true 100% financing as there are no restrictions for how to use these funds, as they are unsecured, and generally obtained through personal credit, income etc (since there is no collateral for obtaining these funds).

These types of properties require experienced management to navigate the challenges effectively.