Use your superior knowledge, experience and analytical ability to spot something in a property being offered for sale that everyone else has missed.  

It gets easier with each passing day to spot them.

Rents have been pretty close to what the housing authorities advertise, sometimes even a bit higher.Fort Wayne’s a solid spot with low taxes and good cash flow—definitely worth looking into.

And you can determine the sweet spot for pricing your place based on comparable properties that are your competition."

Places like Memphis, Little Rock or OK are great spots to look and 200k will be plenty. 

@Nathan Deutsch Welcome TO BiggerPockets If you are not comfy with privacy issues while house hackingyou can try  a  FHA loan or start with a partnership to buy a STR etc

I’ve heard a lot about BRRRR, fix-and-flip, and rental properties, but I’m curious about what’s working for you all right now.I know from talking to people that some have gotten into bad deals while using their own money, and I’m worried that using bank funding and ending up in a bad deal could make things even worse—not just for the investment but for the relationship with the bank as well.I’m just trying to make sure my clients use this funding in the right way, without getting themselves into a tough spot.

Good writeup, I think you are spot on. 

Land is also scarce, so a SFH in such a dense and popular spot will be rare and expensive.Also as David mentioned, land retains its value but structures are generally thought to depreciate to zero over 25 years.

That’s part of what drove me toward the luxury angle, catering to a niche market that’s currently underserved.Your point about local demand alignment is spot-on.