I have installed and reworked the installation of water heaters before.I don't know, but I am told that the typical 6, 9, and 12 year models at the hardware store either 1) don't differ mechanically at all- they're just building an extended warranty into the price or 2) differ only in the anode rod, which keeps the tank from corroding - the longer-warranty models have a thicker or longer anode rod.If you never ran out of hot water with the one that's there now, then get one the same gallon size. 

Along this, if I were to do it again, any repair over, say, $500 needs to have 3 bids, with specific criteria for contractors (current licenses where needed, insurance, warranties).  

@Nick Shri All three of those options are valid.

You will need to find the original owner to give their title to title company to process warranty deed, if not you may hire a lawyer and proceed with a quiet title which in return will provide you with a clean title, but with quiet titles it takes months to process and you are basically opening a can of worms, because the process allows all pervious owners to be notified weather or not they have interest in the title, deed, property, etc.... if anyone of the pervious owners do, then there might be extra money you will need to provide them to clear title. 

If you are not a licensed agent this contract may not be held as valid if you run into disputes.

If you can answer in the affirmative to all three of the above questions, then there is a good chance that the comp(s) you are using are valid with regards to calculating the ARV of your subject property.Hope this helps!

Has there been any new changes that would deem this valid or am I just going to the wrong lenders?

Thank you both for that validation.

@Jennie Kesselman@Steve Morris has a very valid point on some of the material storage.

You have a couple of choices/options:1) You can challenge the city assessor info, but that may change your property taxes.2) You can ask the PMC to use the number from your appraisal and send it to them for validation.