If you are okay with your return numbers then there is no issue with this property profile and location.

Example, if you had shared furnace ducting in your rental and your existing tenant in the main house has severe pet allergies, and allowing a ESA for a new tenant would cause issues for the current tenant, you could deny the request.You can always call the Fair Housing Council of Oregon Hotline, 503-223-8197 Ext. 2 and ask for their guidance.

Have the landlord handle those pesky maintenance issues, roofing repairs, deluge of water coming from the washing machine on the 3rd floor that just exploded through to the kitchen below (yes, this just happened to me in my home.

A national buyer would review the BPO and maybe do some brief online research, but would not typically not know, as in your example, about the sewage issues or extent of interior rehab needed.

Most insurance companies wont even issue the policy if the current condition is distressed.

I have an appointment this week with the L&I office to discuss this issue, to see if they can issue me a letter or anything that notes that the property can legally be used as a two-family.I would greatly appreciate any input that any of you may have!

Not having boots on the ground can be a huge issue as well. 

When you scale to 5+ properties, issues and the cadence of messaging will increase 5x.

Some issues that I see with your plan1) What do you plan to do with your unit in Oregon while you are living in Washington?

Selling now means you could miss out on potential future gains.Market conditions: If the market is currently down, you might not get as much for the property as you would in a stronger market.Option 2: Get a Loan to Fix the BasementPros:Increase property value: Renovating the basement can add significant value to your property, both in terms of rental income and resale value.Higher rental income: With the basement fixed, you can charge market value rent, which could help cover the mortgage, property taxes, and the cost of the loan, with the profit potential.Tax deductions: The cost of renovations can often be deducted from your taxes, either through depreciation or as an immediate expense, depending on the nature of the renovation.Cons:Additional debt: Taking out a loan adds another layer of financial obligation and risk, especially if the increased rent doesn't cover the loan payments.Renovation risks: Renovations can sometimes uncover more issues that need fixing, leading to cost overruns and delays.Market risks: There's no guarantee that the market rent will remain high or that you will find tenants willing to pay the increased rent.Additional Considerations:Current Market Analysis: Understanding the current real estate market in your area is crucial.