Instead, it was slipped in without explanation as if I wouldn't notice??

High-priced metro areas are not really suitable for a repeat house hack investing strategy.Additionally, there are usually levels of location and quality within the same geographic area that can also make a big difference in the numbers.

In the meantime, we have set our sights on a different geographic location (also in the same state) for our retirement, and trying to figure out the best strategy to afford to ultimately purchase a property there.

For some it matters and they look at it as limitation that all offering are in one geographical area.

Increasing unit number or using less conservative, or increasing rent numbers or lowering vacancy rate could be close to a 6% cap rate.The area is known as a tourist destination, is geographically constrained, has a massive housing crisis and isn’t expected to ever build enough housing to meet demand.

Neither bank didn't provide any explanation of what terms I and my loan didn't pass. 

I often joke that if they want a 1/3 of the revenue they should put up a 1/3 of the down payment and co-sign for the mortgage..lol Also depending on the geographical region, there's a chance the larger PM operations could be managing several properties in your area.

It's a geographic list, we market to that neighborhood because of turnover ratio.This person decided to sell to me directly because his home was in horrible shape and it wouldn't have shown well on the open market.

Here is a link to an explanation of what is covered in a good STR policy. 

I also would not budget more for CapEx per @James Carlson's explanation.