If you'd like to set up a call to discuss your options just let me know!

The space will not have head clearance to meet code (only 6' 4" like the bedroom) so my options are to cancel the project or proceed unpermitted.

For starters motivated sellers do not typically bring this up.

There are cash flowing and appreciating options out there if you are comfortable with out of state investing especially in the Midwest.I'm based in the Seattle area but invest in Midwest markets where I have 9 doors now.

Good stuff - you are pretty spot on - technically people max out under conventional loans at 10 - but oftentimes its with fewer properties as people run into hurdles before hitting 10, some of which you mention - wanting to diversify strategies, multifamilies, needing LLCs etc.I think you are on the right track for DSCR Loans - I always say that DSCR is really perfect for people in the 5-50 property range - typically conventional is the best fit with your first few, and then when ready to make the "jump" to scaling bigger and faster - DSCR is the best bet.

What are my options?

Significantly Higher returns with s&p or other options. 

For an investor that has several units, we typically create a additional column  on Schedule E (assuming a personal tax return) called "General & Administrative".

My wife and I have been considering jumping in as a side hustle as we are both mid-career (I'm 41 and she's 38) and we want to open up some optionality ahead of retirement. 

Now I’m working part time for the same company with the option currently for as much as 20-30 hours per week should I want it.