However, I have found local property managers to be very helpful in stating whether an area was difficult to rent, what the market rents were, and even personally knowing some of the tenants of buildings I was considering.

Excess depreciation could be suspended as a passive loss unless you qualify as a Real Estate Professional (REPS) or materially participate in a Short-Term Rental (STR)—which would allow you to use the additional depreciation to offset W-2 or business income.

@Tim Bergstrom I am a lender with a local bank here in Louisville and an investor personally as well. 

Companies choosing new locations look for these key factors:Metro population over 1 Million: Companies require access to a large, skilled workforce and established infrastructure.Low Crime Rates: High crime deters both businesses and residents.Low Operating Costs: Companies prefer locations with lower taxes and fewer regulations to maintain competitiveness.Low Risk of Natural Disasters: Companies avoid areas prone to natural disasters that can disrupt operations.

I've since closed down to focus on other businesses and run my own STR's. 

I agree with Andrew’s comments particularly because this is a home you personally lived in and know intimately.

I personally own properties in these areas, and they’ve been performing well in terms of cash flow! 

You can probably meet him in person if you attend the next HH.

The downside will have more to do with your business personality.

I own and operate a property management business serving these areas.