But now i cant figure out how to get rid of the one extra state. Also if you have any tips on how to go to simpler NFA's instead of what i did (like a thought process for this problem) i would appreciate it a lot. Thank you
From the theoretical perspective: there is a completely algorithmic procedure that given a DFA returns an equivalent DFA with the minimum number of states.
In your specific case: remove the $\epsilon$ transition and merge state $2$ with state $5$.