I would caution you against increasing the down payment to make the numbers work.

It's not profit until you access it in some form of cash.I've seen investors loss properties with equity (a few with a lot of equity) because they can't sell at a price high enough to gain that equity, or because they can't refinance it due to the negative CF,...which would increase with a new mortgage.

The shorter the prepayment term has an impact on increasing the rate.4.

So I think moving the lot lines so the house and 2nd lot can be sold separately or even developed and also doing a moderate level renovation could really increase the value of this property overall. 

The property value has increased quite a bit since then and i would like to increase it, but i wasn't sure it they would entertain it being that its an investment now and not my primary home.  

This is especially true since I often look for properties that allow for tax grievance potential too further increasing cash flow.

We have actually increased our buyer side commission and we tell people that we cost more. 

Coupled with tailored marketing efforts, these enhancements attracted buyers and significantly increased the property’s profitability.

It was put in place because the feds have increased immigration for the last ~10 years (over 5M people or 8% of our population) to the point that we now have a housing shortage. 

I don't beleive this is true based on the IRS site stating you don't have to issue a 1099 if you are "not engaged in a trade or business."