Cash in from other members seems required.

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

Call the registrar and ask. 1-800 321-2752 https://www.cslb.ca.gov/newsletter/2010-summer/page9.htmThe current text of ab968 requires FULL disclosure with copies of all contracts, permits and warranties within the two year window.

Is that an imputed cap rate that you use as a rule of thumb based on your expected operating expense margin?

Considering the change as the STR numbers just aren't working, especially with the associated expenses and turnover frequency.

Is there a minimum balance required to avoid fees?

Some schemes require the homeowner to unknowingly transfer the property title to a third party.  ** Other schemes will promise homeowners that if they transfer the title, they can continue to rent the home and repurchase it at a future date. 

Aside from the 0 money down, even FHA requires 3.50% down, everything sounds like you're on the right track.

DSCR loans generally require 20-25% down.

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.