I push back too when people claim short-term rentals are pushing prices up - they might play a minor roll, but absolutely the biggest drivers are supply and demand, local economy, the national economic trends.

In short, it makes economic sense on your residence, in very specific and controlled conditions. 

According to my research a capital asset is:The IRS indicates what constitutes a real property capital improvement as follows:Fixing a defect or design flawCreating an addition, physical enlargement or expansionCreating an increase in capacity, productivity or efficiencyRebuilding property after the end of its economic useful lifeReplacing a major component or structural part of the propertyAdapting property to a new or different useA repair is as follows:Improvements that "keep" property in efficient operating conditionRestores the property to its previous conditionProtects the underlying property through routine maintenanceIncidental Repair to propertyReference is http://www.dbbllc.com/newsletters/focus/mar2012/irs-clarifies-capital-improvement-vs-repair-expenseNext time I will rent a small excavator, dig my own hole, and put on a Fernco.

I think it's a rather challenging, but a very important step if you're going to buy out of state, because most of your returns will be dictated by the macro-economic conditions of the market you're buying in.

As an active investor and agent in New York and New Jersey - let me say, I've "seen this movie" before. 2001 - 9/11 - New York is dead2008 - Global Financial Crisis - New York is dead2020 - COVID - New York is deadWell, turns out New York came back each and every time.

Hail coverage is unfortunately getting really expensive (like $5000 deductible).As for vacancies, call around to multiple PM companies and ask about economic vacancy, not just physical vacancy.

99% of appreciation investors do so because that is the economics of their local area and they primarily invest in SFHs, no other reasons.

All things equal I'd be looking at economic growth in the north burbs and the long-game of holding a rental 10+ years. 

As far as the most economical area of these, North Glendale would likely be your winner. 

Supreme Court's Wayfair decision, Pennsylvania may require collection and remittance of taxes from businesses that have a substantial economic nexus in Pennsylvania"But from this site, it looks LLC needs to file Penn state tax no matter its size:https://www.revenue.pa.gov/TaxTypes/Partnerships-S-Corps-LLCs/Pages/default.aspx#:~:text=Limited%20Liability%20Companies,pay%20corporate%20net%20income%20tax."