What kind of seasoning is generally required as it relates to the rents/revenue as it relates to servicing the note, etc...I currently own one PadSplit (acquired via Subject-to) that has been up just over a month.

The city has changed Section 8 requirements multiple times lately.  

OccupancyMost lenders require a minimum occupancy rate of 85%.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Most lenders who order appraisals are required to order them through a 3rd party AMC, which can add additional costs to the appraisal but ensures that there is no lender (Or borrower) bias in regards to the values.

It also has a dashboard where you can see how far along you are with meeting the 750 hours requirement with at least 500 hours in material participation and 250 hours in general participation.

Ultimately, I wound up doing a 92-unit deal my first time around and realized that part of the reason I was struggling to win deals was simply because I lacked the credibility to be do so. 

You said public water was available...would the lots require a septic system to be installed or is public sewer available? 

In your opion #2, would that require you to rent a home in Seattle?

I have a few dozen rental homes, and I've found that the only master umbrella liability policies my agent can find now require $1 million underlying liability coverage on the landlord policies.