I'm positive and hopeful they will work with me on this...My question is for you legal guys and gals out there: If I can't work something out with the Church, is there any chance at all I have a case for adverse possession here?

Your contractor is correct, however you should still collect a W-9 from him that indicates his full legal name and S-Corp status along with the signature for your records. 

Lending in Texas legally is far easier and cheaper than many other states.

A few things to note, any legal advice/recommendations would be for the state of Kansas, this is my first Deal, and I am very open to any help I can get. 

I am wondering if I can pursue any legal action against this property management for mishandling my personal information like this.

In fact, a Texas Supreme Court ruling on May 25, 2018 could also severely limit an HOA/POA's ability to prohibit or restrict AirBnB-style rentals.

 @John Warren: Expect you could put together a group of lawyers and get some variation of opinion as to its legality for the unlicensed. 

Being licensed means taking on a legal duty that limits one's ability to take certain actions other investors can take.I know people who became licensed stock brokers but never got a job in the industry.

I get there's some likely restrictions on timing and tax implications, but seems as close to a sure thing as you can get in the investment world.What am I missing?

The additional room attached to the property, we were told that it wasn't legal by the owner's son(the owner passed away).