I'm in the process of doing something similar but I was looking to do a ground-up project in the Hudson Valley.

The key, especially in WA, is to have a consistent screening process that YOU do every time. 

Only if a potential tenant passes and we want them to sign a lease do we start the process.

But they will generally not simply outright lie.What you can also do is go through the process of inquiring about placing an offer.

I have written about my process on BP several times and you can look those up.

Taxation is at the individual level.  

Tax laws can be complex, subject to change, and interpretation may vary based on individual circumstances.

The administrative process for ALE to place tenants just takes way too long.

Your decision-making on holding or selling will be aided by this knowledge.Ultimately, the best decision depends on your individual financial goals, risk tolerance, and the current market conditions.

Quote from @Tim Davis: In the process of putting a deal together for an 29 unit apartment building on my property.