Feel free to reach out and discuss.

Personally, when I see numbers like those given, I start questioning assumptions and class treatments so I can rule out the alternative if possible.

Making sure the property "flows" outside is a key component I have personally found - assuring nobody is stepping on toes, encroaching on each other's outside space, or blocking cars in, etc. 

Some inspectors may eyeball the work performed and feel it is sufficient to sign off and yet others will ask you to open up the walls to ensure everything was done to code.

Lender will use the middle score of whichever persons score is the lowest.

I personally know folks that have lived in their homes for 20-25 years but have constantly refinanced (and used that money for other things), so they don't have much equity.

I live a townhome with five bedrooms and am currently renting out 4 of the rooms (one person per room) and living in the master suite.

Personally, I wouldn't touch it. 

Given the issues you've outlined, it's understandable why you could feel anxious.

If you like paid off houses, as I do, paying off your house may make perfect sense as it is within your risk tolerance and will help you feel secure buying that investment property next.2.