And the reason why your "tale of two halves" will play out as you described.Demand:  This has actually been high almost all along, but rent growth hasn't materialized in response due to high levels of new supply. 

I keep hearing that costs of labor and supplies are rising (when aren't they?)

The process went smoothly, and I’m happy I got a tenant so fast, but the high supply of new builds in the area makes me nervous.

@Shayan Sameer,The really brief answer is that most of TN is pretty affordable apart from Nashville, which is an expensive, supply-constrained metro.The median home price in Chattanooga, for example, is about $300,000, which is a little above your $200,000 budget.

For one is that an appropriate price point for the supply/demand curve intersection?

As Mitch pointed to, on one hand, STRs are housing supply locally and will likely get looked at. 

I just don’t think it’s anything other than a very simplistic investment concept, it’s marketed as if it’s earth shattering with exotic names being given to mundane concepts, and overhyped and if the posters in this thread are any indication it’s being sold to people incredibly unsophisticated in personal finance.  

Supply and Demand: When buyers outnumber sellers, prices and rents rise.Population Growth: Cities with significant and sustained population increases are more likely to see long-term rent growth.Job Stability and GrowthA property’s value is tied to the jobs in the area.

If you don't flip, these guys are usually in the appropriate isles at Home Depot with the carts of supplies or just hang around the commercial check out.

Actually buying these apartments and not the current supply is a good opportunity.