having market knowledge and boots on the ground in Buffalo as you noted is definitely a plus, but there is just so much competition right now, even for the most distressed assets. 

It is most likely price, but just look at your competition and try price your home to beat out theirs (within reason)!

Now the fed is expected to begin cutting rates and we may begin to see greater separation between bank and alt. lender rates but if the fed cuts rates slowly as predicted  there is likely still a window where alt lenders will be competitive, especially in the scenario I described. 

Not easy to find a strong STR investment that cash flows down in our market with the low inventory and the number of competitive offers - Bravo!

Quotes vary based on credit scores, points and other factors.The lower rates haven't quite had a foothold in the market yet, meaning active buyers don't have much competition...yet. 

Also you need a good GC that has competitive pricing and that has actually built homes before. 

It should encourage a free economy with respect to residential housing recognizing that large profits would encourage competition/development.  

@Anna Brown you have 2 factors that give you a competitive advantage right now - low interest rates and a low tax basis.

My competition ranges from 15-20% but I have some value adds that allow me to be at the higher end. 

In addition, Airbnb is getting more and more competitive since the number of listing are going up and many are not getting filled as fast as in the recent past.