If not, rehab the one and rent it, ride it out until the end of their lease and then do the rehab and increase the rent. 

Put a little mark up on the PITI and enjoy the ride.  

My goal was to hold it long term and have some cash flow while I ride the rising Seattle real estate boom. 

I'll definitely try to lean on the expertise and connections a GC has, but at the same time I won't allow him to take me for a ride as I have a pretty decent handle on what should cost what.

@James L, I would think the lawsuit rides with the previous owner, not you.

His riding career is probably over but I still feel a responsibility to set him and his family up for financial success and that's when I convinced him to partner with me on this journey. 

Sounds like it's been a rollercoaster ride so far.

as long as i get to ride along and see how it goes" that would be a good way to build rapport and interest from a mentor that youre serious. good luck!!

So much rides on creating a great experience that to off load it could create problems.

If they refuse, then you'll have to ride out the current lease.