Most areas that aren't A or B neighborhoods do not support new construction without some outside subsidy funding.

b.

_____________________________________________________________________Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.So, the flood of new investors switched to buying Class B properties.

But that is just my experience and B neighborhoods.

(B) That everyone currently doing STR in the market loves it, enjoys what there doing, is having a great time, has the free time to do it, is loving life and not stressed out, time crunched, anxiety ridden and generally stress wracked. 

- What property class is the rental (A, B, C, D)?  

@William SilvaRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

After visiting these States, I just didn't see the benefit of investing in $200,000 in a B- class neighborhood in Ohio, which is a 5 hour flight away, when I could maybe invest a similar amount  in the California Central Valley in a C class neighborhood that I could drive to when needed.

., B.