As far as economic indicators go, there are 100 cities that are comparable to Dayton...it's a lot like Cleveland in that it had a declining population for 40-years...and now appears to be stabilizing. 

My normal process, is that they indicate that they are interested, I show them the property, they fill out and application, then we execute an agreement for lease.  

The tea leaves indicate that only the owner of the property will be able to get a licence for STR, with most indications being they must be an owner occupant. 

I'm curious what leading indicators people use to determine what areas may increase in value.

@Scott Royer you need to be very careful.They can't qualify with a bank which indicates they are high risk.

If it is what the seller is paying, it’s an indication of what you might be able to get, but I would not assume it’s what you’ll end up paying.A few things to check when doing due diligence on the insurance.....Cutting back the insurance coverage prior to the sale is a strategy to give assets a higher return.The seller may be able to insure the building for what they paid for it 10 years ago, say $100,000, and now you need to insure $200,000 to satisfy the bank loan.  

Good credit is not necessarly mandatory to qualify for a loan however it is a clear indication of a individual with very poor money management skills likely not equipped to be a successful investor.  

The management company indicated that 35% was a good rule of thumb for expenses but that seems way too low after reading many posts about the 50% rule.Financing - a 10% downpayment on an FHA loan, with 4.75% interest, and $268 of PMI each month for 132 payments.

And, at Punta Horcones are the best surf breaks in the area: Indicator, Dinosaurs, and 411.LOCATION:Cambutal is the new, up and coming hot spot for surfers and deep sea fishermen alike in Central America.

That's where I would start, that's always your best indicator.