The fees to establish were low and I like to support financial institutions that give back to my community.  

It seems that a DSCR or private institutional loan is the only option then.

The attractive deals in the small college towns in your vicinity are indicative of the enduring demand for student housing, underscoring the potential viability of this investment avenue.Despite the challenges in finding cash-flowing investments, multi-family student rentals can offer a steady income stream and long-term profitability, given the consistent demand for housing near educational institutions.

Payments are often delayed and sometimes, stopped, with no warning--sometimes when new rules were instituted which were never communicated to the owner.

Would you say a local financial institution where you are building your portfolio or out of state where you have history with?

While Redwood City has apparently recently instituted 'just cause' eviction protections which are similar to Berkeley and Oakland, I note the allowable rent increases there are about 9%, rather than the 3% or less in Berkeley and Oakland.

More specifically:- Live where you want: Short-term rental laws in the Denver area are somewhat in flux, with many cities instituting a primary-residence requirement, meaning you must live in the property in order to rent part of it as a STR.

These lower loan amounts are not as attractive for institutional lenders as there's little profit from it on their end compared to offering higher loan amounts, hence why they have their minimums.

Commercial lenders are significantly more scrutinous than residential lenders and there will be far more covenants, conditions, and security required to underwrite and fund a commercial mortgage along with annual reporting to the bank.CMHC does provide insurance to certain financial institution for certain real estate asset types making the loans essentially "risk free" to the banks and thereby allowing them to offer the deeply discounted rates and extended amortizations (sometimes up to 40 years).

What you'll want to focus on is finding an lender/institution who is okay rural location and if so at what LTV.