I don't have enough details to opine on the rate/terms being good/bad, but it's not vastly outside the ballpark.For option 2, why are you assuming you'd have to wait 6-9 months? 

I manage the rest on my own.

Currently, we own a home in West Seattle and have approximately $200K in equity.

Longview, WA  5K just to add a second water meter to a duplex and that was cutting corners and hiring my own digger.

We have consulted with real estate lawyers and they basically just tell us you guys need to create your own terms and how you want to proceed. my thought is, 100k down while waiting for loan to assume, and seller financing and living there until that moment, and covering the rest of the funds at the closing table.

However, everyone has their own opinions and ideas.

In all of my flips, the contractor I use provides their own windows.

If that is the case, you absolutely do not own the property, you can't trespass and you definitely can't cut trees down!  

I own 2 small LTRs and want to wholesale to earn some capital so I can start flipping and STRs. 

My husband and I are dipping our toes into rental real estate by renting out the family home that we've been in for over 22 years.We own the home outright.