Looks like a pretty easy fix from my googling. 3 occupants in this unit, never got a key from previous management company.

This helps with rent growth, occupancy, etc (also helping to buffer).The reasons these buffers matter is that they delay the weakening of property values and buy time.  

It really concerns me that my valuation is $145,000, but the bank was unable to sell it at $140,000 (they've been lowering it by $6000 every 2x weeks).Is there that much of a "foreclosure bias" among owner occupants?

I also use it to print occupancy/sales tax reports for tax submissions.

From what I've seen, doesn't look like my municipality has short term rental restrictions or occupancy laws in their code, but not sure where to look in the ordinances for this or what it's referred to. 

Or with STRs some people might say they're great and others say it's oversaturated, share horror stories, say occupancy and revenue is low, and generally make it sound unappealing.

@Nick Vogel FHA 100%...or, just a standard non-FHA 30 yr owner occupant mortgage.

-Average time to reach tenant occupancy when a door is ready to fill?

So your underwriting is based on 100% occupancy?

For example, you may have full occupancy and someone calls you.