My general rue for the Bay Area is if the rent can support the payment and fixes, then I am going all in in the Bay Area.

MTR is a hospitality business, similar to the STR, more upfront cash, you are being thoughtful and intentional around how you present, offer, and welcome guests on the front end, plus the same leasing, monthly payments, maintenances requests as a LTR; but you a get a more money monthly. 

The INTEREST-only payment would be $1460/m with a $200K downpayment.

Down Payments or All Cash Deals Made Easy!  

If it is your first, I would also review down payment assistance programs in your county that you could be eligible for.

Replacement - Insurance Payment = Deductible..?

Quote from @Kevin Sobilo:  My leases state that any monies owed are payable "as rent" so that if they do not pay that damage bill I can simply choose to evict them for "unpaid rent" which is simple and cookie cutter.FYI this is not legal in Colorado. https://leg.colorado.gov/bills/hb23-1095 prohibits "A provision that characterizes any amount or fee set forth in the rental agreement, with the sole exception of the set monthly payment for occupancy of the premises, as "rent" for which all remedies to collect rent, including eviction, are available"As for the $600 faucet... it sounds like you just called up a random plumber and told them to install a faucet.

I provided a 25% down payment to help create some cash flow and did my best to provide documents as quickly as possible to make it easy for the lender to close on the deal.

What is the interest rate on that and the furniture payment.

While I am not an accountant, and you should speak to yours about this, there is a loophole in the tax code called the STR Loophole which allows your STR (provided you are not using a PM) to be counted as active income/active expense so that the costs, payments, depreciation etc. goes against your active W-2 income.