They are buying NNN single tenant or NNN multitenant retail properties in TX, OK, SC, NC, GA, FL, AL, TN - the states to which the population is migrating and that have business/real estate friendly governments and lower taxes. 

The increasing barrier to entry results in fewer new STR's coming available for sale, but also fewer options for guests to rent. 

One reason eastern KY really lags behind is that they don't have a lot of employment opportunities and lower populations.

Rent rates have increased so quickly over the last few years.

Half of these increases were at or above the 20% national average.

Quote from @Lionel Quiambao:  ... and maybe throw in the option for the tenant for more speed at an increased rent to cover the additional payment. 

Here are some reasons to get the ball rolling:Thriving Market: Florida's population continues to boom, fueled by warm weather, a strong job market, and a business-friendly climate.

I think if you can nail that down you will be able to find a market easier.As a buy and hold investor some of the things that were important to me when deciding on a market were landlord tenant laws, price to rent ratio, housing demand, ability to build a team, large population 500K plus, multi-family availability and some other factors.take the process step by step and you will be fine. 

It’s landlord-friendly, has strong population growth, and offers affordable entry points.

@Chungying ChuIf you want more liability coverage, ask your insurance company if you can increase it.