I heard that less than 20% down causes additional insurance fee? 

Fortegra is non-admitted in California and that's likely causing the issue.

A recent divorce can cause serious credit issues and I've had success with a tenant in this situation. 

Appraiser's learned a valuable lesson in 2008 when they were accused of being one of the causes of the great recession.

Quote from @Evan Polaski: @William Coet, what can cause a total loss in syndication?  

Outside we had trees taken down that were going to cause major future problems with the roof, gutters and the view.

We’ve seen this issue cause otherwise wonderful new builds to sit on the market because it just doesn’t work with peoples furniture. 

I think it would be awkward if you raise the rent after a year, might cause conflict between you two. 

If your problems were really caused by an unexpected ac failure (can’t believe your realtor didn’t get seller to throw in a home warranty.) and not lifestyle.

That's because the city won't calculate the actual amount till a structure is built, aka it's not just a plot of land anymore.This will obvious cause your property tax bill to go up and also your mortgage escrow account as well (sometimes these things can make your mortgage shoot up a few hundred a month).