It is currently operating as a long term rental, but the income would at least triple if we were to convert it to a short term rental. 

Thank you @Joyce Beck... unfortunately with this forum we cant post any websites or any specifics for our projects.. so we wont be able to get any real help of advice for our specific needs... as I was hopingIts been a challenging climb I tell you on this level of Project... and Yes I keep forging ahead with Gods leading, guidance and strength.. step by step.Most are fascinated at how far I have come and now need to find additional investors to get to the next level... constructionI have permits and everything nowI even have a SBA approval but we are over the $5M limit so need Bridge financing to close the GAP of $2.7MI have come too far to stop now... 

The IRS considers it a loan, just like any other, that represents potential interest income to the lender (in this case, you).

Additionally, if you got a loan on top of your cash advance (say, you only had enough cash for a down payment) then I imagine you're also paying loan fees twice.This may all be fine and dandy if the numbers work, but is this a viable plan or a total gamble?

I can pay down faster if I included personal income but at this point I don’t need to.Scenario 2: Pay off properties with the 6.5% mortgage and 4.25% mortgage.

My W2 income wont qualify me for anything in that area.

I am currently renting out rooms to friends (all moving in/out at different times) and need to get a lease together.When I buy my next primary, I want to be able to use my current rental income to get approved for another mortgage.What kind of lease do I need now in order to make sure the above can happen?

I wouldn't add it to the down payment unless it is necessary for cashflow, because the tenants will pay down the mortgage for you.

Additionally, it's always wise to seek legal counsel and prepare for the possibility of eviction.

Was able to maximize the rental income on it through the upgrades and then I did a Cash-out Refinance DSCR to keep the property and it cash flows.