Jacob, From my perspective I would use a letter.

From a tax planning perspective, you are only allowed to start writing off the home once it is placed into service (once the lease starts).You are also only allowed to write off the depreciation, and any other costs or losses against the earnings from the property.That is, unless they get the real estate professional status, which requires 750 hours a year working in real estate.

From my perspective I like as little debt as possible.

If you intend to have it managed after purchasing, reach out to a couple STR property managers and have them offer their perspective on what's worth fixing, what amenities you need, and how much they would rent it for.

So location and type can be adjusted for whatever the market is speaking to you.And, from the perspective of developing your real estate career, the knowledge of the power of a 1031 exchange that you have can be a huge marketing advantage for you when seeking listings. 

Additionally, the flexibility of renting allows residents to adapt to changing life circumstances without being tied down by a mortgage.From an investor perspective, BTR projects present an attractive opportunity to capitalize on the growing demand for rental housing in high-growth markets.

From a lending perspective, it this wouldn't affect your loan approval. 

While I've been doing research, I would appreciate a local's hands-on perspective on the state of the market and potential areas to target.

Please keep it all in perspective and do your homework.

You need to experience at least two complete market cycles to have a proper perspective.