The better you understand failure, the better you understand growth.

@Andrew Smith If you want to take the safer approach then pay off what you have and continue to grow slowly and grow a small portfolio.

Furthermore, I know the market very well and have seen consistent growth over the years. 

Although the cash flow is I think average, the appreciation potential is great, the population is in high growth mode, as well as job growth. 

I'm feeling pretty defeated with this whole thing and a bad contractor is going to be allowed to continue to take advantage of people.

Lender look for income and make sure that will continue doesn't matter if its coming from  self-employed or salaried  job.

As you already have figured out, the more that you learn, is the more you realize you don't know, and the more motivated you are to continue making yourself better. 

Thank you so much Jeff Sechrest, im grateful for you sharing your knowledge for me. its people like you that makes me want to continue my journey no matter what also for me to able to share knowledge one day on this website.

Also when you buy in Class A areas, you'll want to see what the rent growth is since that's supposed to be one of the main benefits.

I think that you sound very conscientious about the value of each of their times so just continue be as honest and forthcoming as you can with each of them.