With all that competition, do you think it is still worth trying to invest in STRs in the area? 

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I suspect then that your giving a very competitive rate compared to other HML at that point ??

 the more competitive rates are  6.9% for 20% down owner occupied, 780 credit score. 7.45 and 1 point for a duplex seems pretty solid.

I recently saw a post from Anthony Walker asking experienced real estate professionals and those newer to the business about gaining a competitive advantage and it got me thinking about what competitive advantages a real estate private equity firm can attain in their business.

This can make it challenging to find competitive terms if you do not fit a certain credit box. 

The custom builders in the area are very competitive and are offering pretty inexpensive builds vs comps.If the lot was purchased recently for 20K and the turn-key cost to build is $200K, after I close on the house (bank said appraised value would be 220K), would a new buyer have problems with it getting appraised over $220K even with other comps selling for 300K+?

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In my personal opinion, MF is so competitive and I have be focusing solely in hotels so I feel it is a strong asset class.  

Would have a great re-sale potential of about $1.5mm profit on $500k investment over 2 years Cash on Cash plus the rental during that period, plus I've analyzed the market, and it is a solid location with little potential competition that could build.The Country Subdivision has the greatest return with the least amount of input, but the housing market and thus lot sales are a little more questionable, although this is a great location.