I'm a local real estate broker working in the Cincinnati and Dayton Markets.

How are values changing compared to the rest of the local market? 

If you’re open to short term rentals, there are lots of places across the state that can really work.I’m a local investor-friendly realtor and work with both long-term and short-term rental clients.

We likely need to look for local lender that is keeping loan in house.  

I am in retail space not office so just check around.

A local couple who’se combined income is 300K and who sponsored the family’s immigration to US is willing to be co-signers for the family of 5.I am thinking that Party2 will put more miles on the house and may be harder to deal with in case of any complaints or eviction, though I am not an experienced landlord so I am not sure what are the factors to evaluate or what all can go wrong?

Check out the events and meetups section for meet ups in your area, they are a great way to connect with local investors. 

When I had my B&Bs we also included local restaurants and attractions in the packet of information which you might want for a STR.

@Hiren Patani Ask a local eviction attorney in your area for a referral!

This is not unusual in the retail real estate agent world.