Since I'm very picky about deals I'll even fiddle with, I eliminate every lead that is over 50% CLTV (combined loan-to-value of all loans and liens) AS-IS value now. 

Is there any way we can structure this deal using a combination of sub2 and seller financing?

I only hope that you give me a chance to combine with you on construction or real estate.  

should we find the investors first, get their property criteria, and then look for the property that fits that criteria, or do our own evaluations and then find investors that like our selections, or a combination of both?.....

I think it's a combination of all of those things that help.Something you might try is to go to a site like Credit Karma where they have a Credit Score Simulator that will allow you to pick from a variety of possible options (i.e. close an account, open an account, increase or decrease your balances or credit limits, etc) and see how the changes might affect your overall credit score. 

@Jeffrey Estrella  my father partnered with his attorney for 40 years ... no legal fee's attorney was an equity partner. as an attorney and broker I would think you know enough to do plenty of good business is there some very specfic specialty that you want further knowledge of you probably know the nuts and bolts maybe what your missing is how to market and use social media etc. those youngsters on this site could be a nice fit for you.. they lack the real experience and capital to afford an attorney etc. but they are wize bangs on the computer and know all about all those new modern things..

@Senad Salihovic Interest rate is a combination of your Loan size, Credit Score, Loan LTV, DTI, Source of income (to list a few main pieces). 

But, that combination isn't going to work much longer either.

Offering and getting the property at ~$560k (possible, if unlikely), combined with getting rents up to market value, gets it extremely close to cash flow neutral (which looks like a lofty goal in Seattle - this 'deal' is par for the course for the other 5 recent sales I've analyzed in a similar way).Anything seem glaringly out of place with the numbers?

We both have descent credit scores (above 750 Fico), nominal amount of debt, have a combined income of $125K (I earn 80K, she earns 45K) and would like to get some feedback to determine the best approach when applying for a second mortgage.