Construction i completely understand it runs in my family. money is not a issue for me is getting the proper knowledge in this field so I do not fail.

If they see that youre generating cash for operations via a non-RE business activity, it could be an issue.

Any advice on how to address this appraisal issue would be greatly appreciated!

They're clearly not having to take any renter calls or deal with any issues. 

Maintenance and repairs typically range from 5-7% of rental income, compared to the standard 10%, as new builds have fewer immediate issues.

I always got the impression that he had a bad criminal record or never got his high school diploma/ GED equivalent or some other issue was preventing him from getting a license, because he was basically just brokering without a license but calling it consulting (I don't know any of that to be true for the record, that was just the impression that I got from his comments and might explain why he used a fake name?). 

As Caleb mentioned, a newer home is likely not going to have any potential issues in the beginning. 

I don't like mixing the two - it can get messy if he stops mowing due to mechanical or health issues, etc.

Agree, Ring or some other camera monitoring  system, security systems will  have issues with alarms &  beeping and other issues which might be a nuisance for guests. 

I plan to put two duplexes on the property but with this high appraisal is there a smarter thing to do to pull that money out of it or just use it for better collateral for the construction loan most banks will lend on the transfer price within a seasoning period. we face the same issues for land entitlement and development.