The owner was a payee and handled the tenants social security checks (up until this month of August), so the rent was getting paid on time no problem. 

Loan properly secured.

Security deposit and the final month's rent is paid up front for each unit.

That is why bank/institution financing on the property, they require a certain amount of monthly payment to be set a side to pay the property taxes, because they do not want to loose the their security in the property.1 - Deed State in which State sells/auction the property itself & then You own the property to do with what You wish to.The state of Washington is indeed a "Deed State".  

He paid $675/month with a $500 security deposit.

You can get a conventional or FHA loan but if you have to move quick to secure the property this could be an issue.

@Zachary GwinWhile it is unlikely that you will get conventional financing through a bank, you may be able to secure some hard money, if the deal is good enough.

Setup is similar to competition, no security gates.  

She continues to not pay, then you can reasonably evict, or deduct from security deposit (potentially) at the end of the lease.If she only has a few months left, call it education expense and get her out when the time comes. 

As investors get older they tend to want more security and will accept less return for it.For example if someone is worth 15 million and 10 million gets 15% coc that is 1,500,000 annually pre-tax.