All I'm saying is, the cash flow you're not valuing enough, is what can accelerate your control over areas and force appreciation where it currently lies stagnant.  

I see a lot of new inventory coming online, pending sales slowing, days on market increasing, price reductions, new construction permits being down, etc. 

This isn't a slow dripping faucet, this is a front door.The dryer should also be working. you inherited these tenants and they had an understanding that a washer/dryer is on premises.  

Agree, the house is located in a good area (Rose City Neighborhood) between downtown and the airport.The house is a remodeled house 3 bed/2bath with a detached ADU, The one thing that worries me is the fact that at some point appreciation will slow down compared to other markets with faster appreciation that can use that money to for a long hold.So far the intention is to invest in distressed SFR to rehab and rent out, however, I like the idea of new construction and that option will require more capital.

Ideally, forced appreciation is combined with market appreciation to accelerate the long term wealth building. 

Ive talked to the owner and he doesn't care much for the place and says hes willing to work with me on financing (possibly carrying the note at an accelerated interest rate for around 3-5 years).

Using leverage in commercial real estate is key to accelerating your financial goals.

I’m thinking I can do more than good on this deal but don’t know where to get finding because my grandfather is slow to pull trigger and playing spectator on all the deals I bring for him to look over.

This type of transfer can sometimes trigger an acceleration known as the Due on Sale Clause, which allows the lender to immediately call their note back (meaning you need to pay the entire note back within 30 days or transfer the property back into your own name.)

Maybe not a 40% market correction like the previous real estate bubble, but due for some sort of economic slow down.