Generally, there are more prospective tenants who may behave this way with lower-priced rentals.

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.Because you're in the military, you'll be able to enter a property with 0% down which means you can leverage your money way more effectively. 

Which is why I pay more, for less cash flow in highly desirable areas.In high income areas, rent is a lower proportion of income so therefore your tenants have a higher capacity for paying higher rent because rent is less than 20% or even 10% of their income.

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?

Could you not put a lower amount down? 

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.

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.