The markets have changed quickly, and what worked 5 years ago may differ significantly from what will drive success today.

I’m looking to invest out of my home state, Texas, and have narrowed it down to 3 markets.

However, the property’s cost basis (what they originally paid) carries over to you, meaning if you later sell, you may owe significant capital gains tax on appreciation.Alternatively, selling the property at fair market value eliminates gift tax concerns, but your in-laws may owe capital gains tax on any profit.

@Todd Anderson totally agree on finding a mentor in the market to learn from.

It seems that often when companies acquire large books of business in one shot there are growing pains and unfortunately those are felt at the client level.

Rules vary significantly, and you need to be aware of licensing, taxes, and any restrictions.Local Market: Analyze the STR market in your target area.

Wayne market? 

Unless you spend money trying to find off market deals..

I'm still in the process of growing my portfolio, but have heard others 1031 all their smaller properties into a larger building and have a property management company manage, OR, set up a seller financing deal with another buyer that gives you the cash flow you desire. 

You need to either, hire a competent property manager or GROW a BACKBØNE and manage your properties.