There is a local bank who can loan on this.

And if a big bank won't give me another mortgage (no idea yet..), are there alternative options? 

Decide for sure what your exit strategy is and have a backup plan in case something changes like interest rates going up or banks stop lending.

I'm new to real estate investing in NW Washington state, but I have really enjoyed listening to the podcasts and reading (many) of the books from the reading list. 

depends on location, in a city they should be within .5 mi, in a suburb 1 mile and rural  5 miles but unique properties can be stretched further, I have done thousands of BPO's for banks, the rules were 3 listed and 3 solds, within 20% speck and similar condition, and make appropriate adjustments for differences, there is more art than science to it.

I refinanced back in 2016 and took out 35k to do a flip in Las Vegas which did pretty well which left me with 60k in the bank and 120k loan.

My suggestion to you would be to just off load it as is, or speak to a bank to see what kind of financing is available (much like you stated before with a HELOC).

I have 40% down payment and amazing credit score and credit history.The issue is that I am self employed and I dont show any income on paper, so the bank won't consider loaning me money due to "low income" This is an amazing opportunity and I have it under contract but I'm about 100k short, how do I get that financing to get to the closing table?

Would the banks want the mold and belongings removed before they fiananced the deal, we are looking at a conventional loan with 20% down, priced around 105-120,000.

Initially the bank used Zillow and wouldn’t listen to me about the houses value.