I don't want to keep working for the next 10 to 15 years in an industry where my earning potential is already capped while we build our investment portfolio, I'm just not sure contracting is the right direction given what we have already and of course it is back breaking work. 

Yes talk to commercial/portfolio lenders and call small local banks and credit unions in your area.

The buyers interest and yours might be better served by talking to a local portfolio lender who is not bound by Fannies regs and can be more flexible.No comment on whether the appraisal was right or wrong.

I am also wondering, your buddy that gave you the advice, what does his real estate investment portfolio look like?

Based out of California, I have a construction company in Cleveland that does high-end flips, and I also renovate rental property to keep in our portfolio.

I’m in search of a new real estate agent that can help me add to my buy and hold portfolio.

It's looking at what you want your margins to look like and what you want your portfolio to look like.

Our cash-flow from the previous house/now a rental is enough to cover the increase in our mortgage, so it was a cash-neutral move, but now we have another house in our portfolio gaining value. 

Would you mind sharing the name of the  credit union so we can add it to our lender portfolio?

I'm rather fortunate as my parents have been doing this for about a decade, and have about ~30 homes in the portfolio.