Sounds to me like an investor turned down the deal because after finding out the actual payoff, suggesting the numbers are not investor worthy.

Our agent is not an expert on this type of deal but suggested a short loan term of 3 or 4 years and a balloon payment and written up by a lawyer. 

I then suggest setting up a bank account where there is auto pay.

The hard money lender didn’t suggest going straight into a long-term rental loan, but honestly, that’s on me for not digging deeper into the options before jumping in.

However, just to set expectations, they most likely won’t make any changes unless there’s a clear error in the valuation.That said, since the $1,000 increase works out to about $83 per month, I’d suggest checking what the market rents are in your area.

I'd also suggest Union City, where my wife and I owned a condo.

If the numbers aren't there yet, I'd suggest focus on growing your income, look into house hacking as previously suggested, or consider partnering with other investors who can qualify for the loans.

Like Jake Baker suggested, keep good records and have a dedicated bank account for your property, properly separating personal and business expenses.

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

Quote from @Sonseeahray Harvin: General suggestion: Google people before you trust their replies to things :-) Oh boy!