I’m assuming you obtained this 6.4 cap rate from reliable sources such as local commercial brokers, bankers, other investors.

Down Payments or All Cash Deals Made Easy!  

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.

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

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.

Replacement - Insurance Payment = Deductible..?

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.

For mortgage debt, the following additional requirements must be met:the party making the payments is obligated on the mortgage debt,there are no delinquencies in the most recent 12 months, andthe borrower is not using rental income from the applicable property to qualify.

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.