https://www.hud.gov/sites/documents/FHEO_BOOKLET_ENG.PDFTypically owner occupants are excluded from fair housing regulations as long as they actually occupy a unit and there are less than 4 total units on the property. 

Most agents are bad on reading instructions (and a few other things), but an equal amount of them can't figure out how to set up Showintime correctly and unintentionally will block all day etc..The other issue is that it will not show up well on mobile devices. 

I was thinking of turning it into a 6 or 7 bed house and renting out each room to college kids...Any restrictions or laws or regulations in the state of Washington that would prohibit me from doing so?

Federal Regulators including the Federal Reserve and the FDIC look at a sampling of each bank's loan portfolio and they apply a "grade" to each loan to come up with a quality of the bank's loan portfolio.

Check your local regulations. 

Learn what the local regulations are so you know you can adhere to them.  

There's income limits for the tenants, and all the forms attached to these MLS entries lead to believe there's a lot of regulations and more expense in owning one. 

A land contract (contract for deed) has been altered in its viability in a number of states since Dodd Frank and other regulations put in place since the real estate meltdown post 2008.

This property was actually my grandparents and now it is in the process of being emptied out to prepare for sale.My uncle, the executor, plan is to rehab the house so it meets the FHA’s regulation standards for anyone who would potentially be buying the home in were to happen in the future.

Can you get some other together who are landlords and send a collective letter to the people responsible for these regulations?