Which made him (incorrectly) conclude that you can write off all improvements in the first year.

He has done numerous things incorrectly and the workmanship is awful.

They are behind, but you can access your permit here https://ca.columbus.gov/ca/They normally respond in 21 days if everything is turned in correctly.

I always try to read between the lines and ignore the terms which are often used incorrectly.

Also, your assumption that appreciation has treated you better than cash flow is incorrect, since you don't have any way of knowing that, purchasing the right properties, you would have enjoyed cash flow AND appreciation. 

Using funds, or incorrectly collecting funds and not applying them as indicated is particularly illegal. 

Perhaps I was looking at value incorrectly.

To my knowledge, conventional loans require 20% down, is that incorrect? 

To me the premise of your FED (the amount outstanding) is now incorrect (...probably).  

If you chose to keep the contracting “at arm’s length” and avoid any future liabilities, then verify/hire your contractors and don’t bring them in-house and be clear about their roles and responsibilities beyond the Scope of Work.I think it’s also important to know for all of us here at BP that the word “contractor” carries a lot of weight and means very different things to different people, none of them incorrect.