I'm thinking this would be beneficial as I wouldn't have to worry about the tenant not paying rent, I would be building equity over time in a market it would otherwise be very difficult for me to enter, and I'd be able to minimize fees by finding the lowest cost property management possible (as I wouldn't need to worry about tenant screening, etc). 

Burien is one of the few municipalities around that hasn't enacted any further rent regulations on top of state regulations, except for a licensing fee.  

Instead, I would strongly recommend acting as a "bird dog" or finder and then referring the notes you find to an institutional investor for a fee.

For $12,500 you will pay a lot higher fees and costs due to the lower amount.

So the question would be will the buyer's bank allow an assignment fee on the CD/Settlement Statement?

How is a fair “fee” for the bird-dogging service I’m basically doing calculated?

You'll be able to avoid Realtor fees pretty easy which is 6%.

William,Option 1 - pay close attention to the fees and regulations with HOA/COAs.

Im a new wholesaler and get really frustrated when I use the formula/wholesale fee.

Most REOs on the market with a sign, and a listing realtor one needs to pay a hammer fee (4.5-10%) on top of highest bid.