However, depending on how I go about it, I need to know, would having a company provide me with a W2 vs being an independent contractor and utilizing a 1099 impact our ability to qualify for a conventional loan?

I don't think this will turn into the fiasco back in 06-07, but it will definitely impact the residential real estate market in a big way.

The busy street and being in a flood will always impact the home value and/or lessen the amount of buyers or renters.

My concern is the potential impact to my credit (and the general pain) to go through underwriting every time I sell a property and acquire a "new" loan...has anyone been in this position before?

I REALLY want to sell my house before that, And I was not planning on listing till late Sept.To me it feels like late 2009 or may be 2010 - Based on the facts that the subprime loans and alt-a will show their scary faces in that year and followed by consumer confidence to an all-time low (it is already compared to prior years), people have already started giving away their car keys (defaulting on that too), global impact due to US economy as almost all countries trading with US have enormous amount of Dollar denominated assets, etc. - Thats my opinion (and I may be wrong)...

Showing properties or businesses to potential buyers that won't really work for their needs is a waste of time.IMO, if you don't know the business you're attempting to serve you'll end up wasting your time as well as that of clients and prospects, that will impact your reputation in that industry.

Is your husband running his own business, and he has a line of credit, where a short sale or delinquency in mortgage payment might impact it?

I understand if you are upwards of 15 properties, the impact is negligible.  

The bigger a project you go the more they watch with an eagle eye what your plans are as it impacts the area for many years to come and the bigger picture for growth.

I've rented to multiple people who have had foreclosures, bankruptcies and divorces that have impacted their credit reports.