Depending also on exactly what the issue is, you guys may be able to slug it out in a federal district court in Washington if there is subject matter jurisdiction. 

I prefer to invest in areas with a more diverse economy.

After listening to podcast 527 which was amazing I would like to use Subject to and seller financing .

These are strictly business purpose loans and you will be signing a document stating that will will never use the subject property as your primary residence as long as you have that loan. 

If they opt not to accept the property by declining to timely give you a non-refundable reservation fee or actually sign the lease with a full security deposit and first month's rent THEN AND ONLY THEN should you process the next applicant.You should not process multiple people and select one subjectively; you're asking for trouble with fair housing when someone claims they were discriminated against.Offer the property to the first one that applies that meets your written standards for qualification.

I always try to play by the book and I was not sure about this specific issue as I kept finding different takes on the subject online.

I was supposed to be speaking at BPCon on the very subject of implementing the lead gen system I use with the BP website. 

I just recently discovered BIggerPockets and podcasts on the subject.

All cities (10,000 residents +) subject to this law must allow duplexes on lots in residential zones!

I am wanting to learn real estate wholesaling from someone who is knowledgeable about that subject.