> Things exist and operate in a certain fashion, this is called reality.
> We use observation, testing and logic do understand what reality is and how it works.
> Based on those criteria, we can make statements about reality.
Just so you know, I agree with these, as you assumed.
> 2. He is outside of reality, so not subject to our tools of observation and testing
This is the first of two with which I disagree. God is not outside of reality, just outside of nature. God exists (your second point #1), and so He is, for the sake of argument, "real," and therefore not outside of reality. He's just not a material being, as time is not material but still exists, as well as memories, etc.
> he can interact with reality and affect it in ways we can’t understand.
I also don't fully endorse this statement. There are some ways God interacts with our natural world that we can't understand, but many of them we can. That's why the Bible was written: to interpret historical events and to show us how God interacts with the natural world and history so that we can understand.
> The problem with the second set is that it tells you nothing about reality and it is impossible to demonstrate.
My contention is that the second set does indeed tell us about reality, possibly more so than history or science does. I would also contend that God is not impossible to demonstrate, it's just that He is not subject to scientific demonstration.
For instance, the Supreme Court is now hearing a case about whether Trump should hand over his financial records. You can't just say to SCOTUS, "Use science to demonstrate whether he should or shouldn't." This stuff is real, and it interacts with reality, but it's not science. That's my problem with your insistence that God be subject to scientific demonstration or He's not real.