Either the first appraisal received was absurdly high and the new one represents the accurate value, vice versa, or a combination of both.

I have used a combination of private investors, local hard money lenders (at rates more like 2 pts. and 10% with no profit split) and community banks.  

That kind of thing would only apply to capital elements of the house. 

I would compare the rates they give you with other quotes and see which gives you the best combination of coverage and price.

The property is still purchased by you, but the LLC is the lender.Now if you are using a combination of things this same strategy/concept can still be used but you'll need to file a 2nd lien for your 2nd source of money. 

In this market, they don't have to.However, we have now also an element that makes our job much easier as investors: appreciation.

Probably more than all other markets combined. 

In this case their total household income (of the husband and adult son combined) does meet the requirement of being 3x the rent, but how should I apply requirements of good credit for this and other applications with multiple tenants in one application? 

If they give very little information or the new capital will only add a year or two to the viability of the deal, then I am likely not going to give them more money.The changing or stopping of distributions and calling capital are very stressful and concerning events when you combine it with a lack of information and transparency from the syndicator. 

So I'm looking for the combination of affordable properties (cheap could be misinterpreted) and (mass) tourism.