Bank found lots of issues with that appraisal and won't accept it. 

also open to other ideas to generate so cash flow - ROE is really an issue Thanks !! 

Are there other issues I should be considering?

Here is the actual chart that shows the rents for each income level: https://www.sdhc.org/wp-content/uploads/2023/AMIIncomeRentCh...If you are still having issues understanding how it works - Send me a message.

Another important issue is how to take the title. 

Do you see any issues with this?

I have clients (Im a mortgage broker) who over leverage with gap funders and HMLs on purchases and even THEY have valuation and cash issues when concluding a project.

I've never heard of a warranty deed issued at foreclosure sale.

Asbestos siding is common on houses in Baltimore built in those years and is a non-issue (at least here).

Bought them both on short sale in 2017 and 2018 and have no issues keeping them rented.