If you could find a duplex property (or a single family house that could be turned into a duplex--check any HOA restrictions first), or a "fixer upper" to live in, that could be a better use of the equity you have in the rental house.If you run the numbers and decide it makes sense to sell the rental house (check with your accountant, figure out closing costs to selling and buying) then you'll possibly have more money to put towards a primary residence.You may want to check the neighborhoods that fall in the school district you want to stay in and look in "under appreciated" areas...maybe not the A class neighborhoods, but ones that have potential of becoming "improved".While I understand your desire to stay in a particular school district, it's not the end of the world to consider other districts if they will allow you to build real estate/family wealth that will put your entire family tree in a better position."

Why would the 'Contractor' not want his earnings reported to the IRS?

Just doubled your earnings and have no debt.

As the owner, I want my investments to earn a 10% return or better.

Learning is earning.

And here we go....the start of the fall from earnings.

The rent control advocates, having zero understanding of economics, blames greedy landlords without realizing the rent control has increased risks.My properties are in a very desirable area that is very constrained.  

After analyzing the local Mercer County market I've noticed there are not that many MFH that are desirable meaning cash flow can occur, but appreciation, schools and good tenants will be at risk.

I'm talking about a state overreaching and depriving a citizen of income / the right to earn a living.

Also, they prefer an uncertain big payoff to a certain but lower payoff - even when they on average earn more per hour if they just charge for their time.