It has great cash flow and in amazing shape except one thing. 

@Barry Mountain I'm looking for something similar except I have been paying cash for all the properties I've purchased lately and I'm looking to pull some of the money to buy more.

Reading the landlord-tenant law in WA, Seattle has a lot of exceptions.  

The only exception would be, as was mentioned, a case where it was grandfathered in.

The downpayment is practically as low as they get (save a couple of exceptions like VA or USDA loans which have special requirements) and the credit score requirement is lower than most traditional loans.  

A local attorney who specializes in commercial might help.How do you know about title exceptions, ALTA level one survey, site inspection, phase one environmental,appraisal, service contracts, loan covenants,leases, property management agreement, estoppels & snda's, association dues, ccr's,etc.?? 

This turned out to be a Turnkey type of transaction except I was getting in before rehab instead of after allowing me to take advantage of forced appreciation!

I'm wondering if we have to wait until one year has passed before renting it out, or if there are any exceptions to this rule.

The transfer of beneficial interest is not recorded and does not cost a thing, except maybe notary fee.

Note that the term on these notes matters a lot; especially if you'll have a lengthy rehab where the project duration may possibly exceed the note term to get a marketing period long enough to find a suitable buyer.5 points, 15%13%, 4 points, 1 year, 70% LTV13%, 4 points; talking 90% LTC, 1-year IO, $750 processing9.9% IO, 3.5 points, no prepay, 1-year, 90% LTC70% of appraised value, 4 points, 14%, 95% LTC, 1 year65% LTV, 90% LTC; 13%, 3-4 pointsThe best lender I found in the country that would loan on new construction projects in Austin was 9.5% IO, 3.5 points, no prepay, 1-year term, 90% LTC.Local small regionals will loan at 85% LTC (the FDIC standard limit without carrying an exception on the books) at about 6-7% and 1 point.