I am in the same boat and completely agree with you in that the rental market does seem to be changing quite a bit in recent times- much more difficult to get good qualified tenants these days and decent tenants seem to have their pick of the litter - often very flaky and uncommitted because there is so much supply out there.Rent price is definitely a key issue but what's the more likely outcome of a significant drop in rent price below market?

Real Estate Update Here's the latest market report (based on single family homes): Mortgage Rates:30-year conventional rate today is 7.15%30-year VA rate today is 6.65% Median Sales Price:March: $475,000April: $476,000May: $475,995 New Listings:March: 1,845April: 1,957May: 2,099 Median Days on Market Until Sale:March: 16April: 12May: 13 Months Supply of Inventory:March: 1.9April: 2.2May: 2.2 What does "Months Supply of Inventory" mean?

That is why you should request to review all contracts related to the property (not just leases, but other service contracts too, like pest control, cable tv, etc. that the owner may have) during your due diligence period of escrow. 

New supply hit all-time highs or very close to it for many cities in the state.

With that being said, if you're looking to maximize a cash flow focused strategy, you're going to need to start with at least a duplex, which we have a great supply of in both Cape Coral and several other surrounding markets.

The supply of new construction continues to flood the market suppressing rents massively.

Historically, real estate appreciates 3% - 4% annually.It may be possible, that an area like Austin will appreciate more.Austin, TX, from my understanding had many years of crazy appreciation and recent years of negative appreciation.There are also a lot of reports that Austin, TX has a lot of new rental supply that came and is coming into the market.What is your required return from an investment?

Turning a corner with more inventory, more sales, still higher prices reflecting strong demand.Median Price: $660,000, +7.06% Yoy.Closed Sales: 3,615, +8.92% Yoy.12 month Closed Sales: 38,005, -13.85% Yoy.YTD Closed Sales: 13,004, +9.02% Yoy.Inventory: 5,896, +26.31% Yoy.YTD Inventory: 21,298, -10.88% Yoy.New Listings: 6,146, +15.96% Yoy.YTD New Listings, 20,237, +7.49% Yoy.Months Supply: 1.8, +38.46% Yoy.Cumulative Days On Market 38, -13.74% Yoy.

It is essentially the same as a LTR lease with less time.I would say you provide starter supplies of consumables and cleaning only happens after they leave.

I supply enough supplies for the first 24 hours, a bar of hand soap, a roll of toilet paper, a roll of paper towels, and cleaning supplies.