I actively worked to pay down the mortgage so i could stop wasting money on PMI.

So spend NO money on advertising and use that money to make our product stand out.. this has led us to raise our prices Far above our competition more than makes up for it and we sell them as fast as we can build them.. for us thats delivering 2.5 homes per month. 

Can you shed more light on why you need this money?

There are many hard money lenders who do DSCR with less ins and outs and less rules.

If not, I'm not sure. is this from a hard money lender?

The contractor is making money based on the work you hire them for.

So that's another layer between you and getting your money back and/or paid.  

We tell hosts all the time, it's more management and more money than traditional SFR.

Use private money lenders and choose a conservative market.

It won't be as much death benefit as you have now, but it's better than losing the money completely.