I am getting a line of credit on a second lien deed of trust with the bank that has the 1st mortgage.

Increase business taxes = cost of products and services goes up.

The problem you will have is that many will only offer products in their region so out of state can be a problem. 

Let's say most of the loan product you run into will be around 15-20 year notes, has some kind of balloon, and has an adjustable rate.

I planned on living there a long time and just did the repairs that i did for my own benefit and was going to redo everything again down the line when i had more money and wasnt doing everything all at once.  

Because of the existing nursery home lien, the new note would be second in line. 

We had a reliable renter already lined up so didnt have to worry about the search or vacancy. 

Have you tried to obtain an unsecured line of credit with your new business in addition to your loan? 

This is test on production

There are also line of credit type options that may work for you.