Ask for a rent roll, bank statements showing rents paid. existing lease, tenants original application hopefully with DL pic and social security number.  

Flipping homes or wholesaling are both considered earned (or ordinary) income. 4) I think you are assuming there are tax advantages to an LLC that don't exist.

(if that even exists anymore)IMO if you are looking for a rental/ investment property with the goal of property appreciation and decent rent take a long look at Calgary.We are already seeing a lot of migration from Ontario to Alberta and that is only going to pick up as home prices are so cheap.As of this post, there is a full SxS duplex / 3 bedrooms per side for ~$480,000 for BOTH sides

)3) Cash out refi with existing partners to cover down payment on new place.

Ask the existing owner for a copy of the lease of all the other tenants.  

@Daniel FelixMy advice to to speak with a licensed HVAC tech and have them come out and check current temperatures in each room with existing unit, as long as it is still operational.

The existing good actors (those already paying transit tax and with few neighbor complaints) will get priority.  

There was also the issue of ever expanding landlord regulations in seattle,   and I have pretty much decided to gradually phase out my seattle portfolio.If the building was in a stable neighborhood it could have made sense to do the work it needed,   but given various circumstances including negative trend of that area of the neighborhood  (street camping and constant low level property crime) and townhouses replacing many homes in the area meaning the structure was worth zero and the dirt was worth everything,   it didn't really make sense to invest a lot in the existing building.    

I haven't done any ground up construction and have focused more on renovating existing properties. 

When you consider the cost of buying a replacement home, moving it, setting it up, and then completing any repairs, it usually makes way more sense to renovate the existing home instead.