There are some real advantages to investing close to home, especially for your first property:- You know the area better- It's easier to manage and check on the property yourself- You can respond quickly to issues- You'll have a better network of local contractors, realtors, etc.That said, if the numbers really make sense in Conway or Titusville/Melbourne, it's not impossible to invest out-of-state.

@Marc ShinI'd hire professional management...If it's going to be an STR, you really need it to be top notch, appear top notch, and be managed top notch"Minor updates" may not cut itBut I only have the limited information you posted

My company does over 30 DSCR loan transactions a month, so I definitely have a lot of experience with that program.Mid term rentals can be tough, but they can be done.LTR (long term rent) is easier for DSCR, that would be a traditional 1 year lease tenant.I'm very familiar with the OH state market, if you have properties in mind you want to purchase, they most likely will qualify for LTR so you can do a DSCR with 20% down. 

Investors are seeing consistent bookings throughout the year, making it easier to predict cash flow and maximize returns.Lower Acquisition Costs: Despite the rising demand, Indianapolis still offers relatively low acquisition costs compared to other major cities.

Here are some reasons out-of-state investors love the Milwaukee market: - Affordability: Compared to larger metropolitan areas, Milwaukee offers relatively low property prices, making it easier for investors to enter the market.- Strong Rental Market: The city has a robust rental market due to a diverse population, including students, young professionals, and families.

I analyze my comps and the worst properties appear on page one.  

I think it's also easier to say given the current market.

It sounds like you're ahead of the game here because you're focusing on your local market, which certainly makes things much easier. 

This will indeed appear suspicious to the IRS if they take a look.

It appears you are addressing the poor insulation in the attic situation.