I have been contracting with my current employer for a year now under 1099.

As stated you screen as you would any other applicant except employment of course.

I also get a few rentals by doing the pre-employment drug screening for the contractors to get plant access.I've been doing this for 7 years. 

Do those numbers get transferred to a schedule E or am I actually paying regular old 1099 self employment tax?? 

@Leron Horn - The purpose of portfolio loans is that they don't have to meet current FNMA guidelines for conforming loans - so each bank sets their own guidelines when keeping loans on the books.FNMA guidelines stipulate that you don't have to be employed at your current job for 2 years, but you have to be employed in the same type of position / industry for 2 years.  

Also collect recent paystubs, confirm employment, call previous landlords, etc.

All of these may not be triggers for you and me but it may be triggers for other investors.The strategy you had in place is not working -triggerThere were additional costs that the previous owner did not reveal to you -triggerIf you got ripped off by people -triggerIf you partnered with someone and you do not get along or can't agree on nothing - triggerOne of the big employers in the area filed bankruptcy -triggerOne of the big employers in the area decides to move to another city or state -triggerhome owners association is similar to Hitler's gestapo -triggertenants association is unreasonable and troublesomeIf you see another deal that you like better -triggeryou feel the market is going to change -triggerIf the weather changes and suddenly you find that your area is not the same ie drought or flood or mud slide -trigger Insurance increases because of weather change -triggerfound out that the land is contaminated - triggeryou are tired of dealing with the property -triggertenants not paying rent -triggeryou took on more than you can handle -triggerproperty taxes went up -triggergangs in the neighborhood -triggerfamily issues change your priority and you simply cant handle it no more -triggeryour tax abatement has expired - triggertransportation has discontinued in the area -triggerlegislation to put in a new transportation station has been vetoed or approved -triggerthe team (ex contractors, project managers, etc) you tried to put together doesn't work out- triggerillegal activity found on the premises -triggertenants tell you place is haunted and you know someone died on property -triggerdemonic neighborsabundance of pests -triggersink hole formed - triggercess pool discovered -triggerwater contaminationpopulation changeschools accredation changesschools shut downtenants or their family starts shooting at each other or youwrong type of business sets up shop near your property, or they are too close or your comfort. ie gas station or drug dealer or prostitution or cemetery or factorywhatever does not float your boat -trigger

It's VERY hard to qualify if you are employed full time. 

@Tony CastronovoHave you considered a resident manager to help you with management responsibilities for the 16 unit, and when you get into your next deal, possibly hire professional management.On our first 2 deals, we self managed and employed resident managers.

I think STL is a solid investment space; there is a TON of federal employment which is quite stable, and Scott AFB on the IL side is one of the area's largest employers, and that's all federal.