Do they typically assign their contracts or double close (if they assign it to you then they would need to provide a contract to you before signing their assignment FYI) What do you have available now?

@Steve Uhlig they typically aren't giving them the repair funds up front. 

This is where an attorney would be able to advise if you've created any sort of contract by accepting that money.  

They set up the towels in all sorts of fancy ways, do "hotel corners" on the beds, etc.

Typically an appraisal is only needed if the CLTV is >80% (which is irrelevant for NOO since the limit is 80%), the line is >$250k, or the desktop software they use can't get a good value. 

I've been hoping to pick up another 3/2-type duplex or even a fourplex, but the numbers typically don't seem to hit 10% cash on cash for me.

I do recommend you talk to a lender when you are getting started, but typically they will only talk in general terms until you have an actual property picked out.

Or if the agent is the disagreeable sort and the deal is really good you can offer to pay the commission out of your own pocket.

It is also not surprising that typical residential lenders would stay away from this type of property as well due to the commercial use aspect.

In any case,   one argument FOR holding onto smaller apartment properties in seattle is that townhouse redevelopment,  which requires the same zoning as small multifamily causes a lot of SFR and smaller apartments to be lost to redevelopment,  so this class of neighborhood scale and typically comparatively affordable housing is going to get harder to come by,   and presumably in higher demand as a result.