Ask them what their appetite is for your size multi-families and what type of deals they have recently funded in your area.

It’s hard enough to comp STRs bc less-than-optimized pricing can suppress total revenue significantly even if the property & mgmt are otherwise comparable to what you feel you can deliver. 

I am getting the run around from some insurers saying the property does not fit their guidelines or appetite.

I do stay with small to mid-sized banks, but (just around here) the appetite is just not there.

I think it also depends if the particular bank has enough room in their lending bucket left (bank appetite) for commercial real estate and real estate backed assets (notes).

Although, as I stipulate, "someone's got to live there" and so it's not only the investor's appetite for risk but also the borrower's perspective on what is good.

Just cosmetic fixes like paint, flooring, and others is the extent of my appetite for now.

And keep in mind that the hotels and short term investors want the cities to crack down on all of the investors that aren't following the rules like the fire suppression systems, emergency exits, Certificates of Occupancy, City inspections and other safety updates that cost money.That being said, the going rate is always in flux. 

It is best, I think, to contact the small local (to the property) lenders and see what their current appetite is.  

my down payment to get this asset worth $2M (yes, life insurance is an asset just like real estate) is basically between 1%- 3% annually depending on my appetite which can be reassessed annually to fit my budgetI thought it was too good to be true.