Naturally, they are your competition and the daily rates need to be taken into account.

@Jonathan Bombaci recommend using that amount as a bargaining chip for lower rates.80% of evictions are wash, rinse, repeat. 

We've been able to rent properties pretty quickly, just as long as the rental rate is appropriate!

You can't beat the price, either, or the interest rate on deposits.

When looking at discounting properties to find a deal, I tend to lean into what the seller is looking for when I know I'm holding. 

By investing in metropolitan areas your yield would be lower (6% to 7%) but you would have a lower vacancy rate.

Home Appreciation: You’ve estimated a 2% annual appreciation rate, which I feel is quite conservative.

I will say that even though you get the boost from VRBO and AirBNB, the first year of operation is usually lean as you build up the rep.Offering a discount on the stay is a way to be more attractive but don't go crazy.

Are there issues that you think you should avoid regardless of potential for discount? 

You are likely overpaying by $5,000.Broker fee of $3,000 and Processing Fees of $2,000 seem out of place...but then again, i never used a broker to get a loan so I am not sure about that.If the broker was able to get you an interest rate or loan product that you wouldn't be able to find on the open market...its high, but likely fair.if you are getting a loan product that you could have gotten by going to a normal bank...seems high and unnecessary.