If this true then we see the same in 2017!

This would also hold true for plumbers, electricians and roofers.

If that's true I would be concerned.They "requested", meaning you don't have to add this - true?

I'd like to clear up a little misinformation you've got in your first paragraph.First statement:  "I know that the banks don't like me buying another primary residence and buying "down in square footage"I'm not sure where you heard these things, but I don't think either is true. 

I have a few properties, but they are professionally managed.

He said it's hard to figure the true cap rate.

Contact the county or local planning department to see if there are any issues with building on the property - bring donuts and make friends as these people will make or break you.If you are unsure of the borders of the property, then have the seller order a professional survey be done.If there is a Department of State Lands or similar in your region then find out about any special delineations on the property.Find out about power.

My current job doesn't offer a match and I haven't been able to contribute to my Roth so this new strange space opened me up to finding the awesome community hereI thought I'd ask for some steering direction from those who have some experience so I can talk to a local professional (Dallas, TX) for the details/next steps.

@Rodney Marcantel well, that is true.  

Here's a handy timeline chart that I used yesterday in a post to show where an expense should be allocated depending on where you are in the process.There are a few other caveats regarding business trip deductions and start up expenses that you will want to talk to your tax professional about as well.