I would not put so much on an appraisal report.A number of reasons might be the answer for this lower appraisal report:1- What city is this property located?

BoA is fine for this sort of setup.. but consider a local credit union in San Diego for lower fees and simpler sub-accounts from what I’ve heard.

Could you not put a lower amount down? 

You may FEEL that they are but your expenses may go UP at the same time as rents need to be LOWERED!

I understand they purchased their property bit earlier at a lower price, but the difference shouldn't be so significant.

If you are having that much activity but cannot find the right tenant than you will want to lower the price just slightly to entice better tenants OR you can relax on your qualifications.

Local banks typically offer lower interest rates but might require a solid track record and detailed financials.

We took the reverse action and started lowering asking rents until they moved.I suspect the reason that one property of yours turned quickly is because your asking rent was very favorable vs. local competition. 

This implies residential units can be built at lower costs and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.

I would just take into account that a lower down payment will mean a higher monthly payment so be sure to run the numbers conservatively in order to ensure your STR revenue is able to carry your monthly payment with this higher mortgage cost.