Plus if you do not have a well established team to get your project finished up before the end of the summer selling season, you may not get the return you were expecting as holding costs and declining values are eating profits.Option 2 sounds like a safer bet, but yes you will have to cover some expenses and may have to carry the property with your own cash until rent prices appreciate enough over the years to cover your mortgage payments. 

My beef with the people who teach this are(1) they imply this is somehow related to real estate investing; it is not(2) they imply you can be successful with only the knowledge they teach; this is not true, you need managerial and business skills and knowledge to a degree way beyond the scope of the “training” they provide.(3) they imply you can successfully do this on a part time basis; it’s actually a full time business demanding all of your attention(4) they imply competition is limited; competition is actually fierce, except for the deals on which there is no profit.Additionally, this industry is state regulated, by the state in which the property is located.

That's going to help make or break your market decision-- barrier to entry, purpose, and regulations.

Then in keeping with USPS regulations (that the exasperated mail lady gave us because of the complaints) we added large numbers on the mail boxes that corresponded to the respective tenants units.

Established Market : There’s usually a steady demand for renovated properties in established neighborhoods.Both Charlotte and Louisville have neighborhoods ripe for this type of investment.

I have fired customers because of their attitude , there is no law or regulation saying you Have to work for someone .

I recommend establishing a thorough and well-structured screening process.

With all the new regulations and liability, I'm not seeing the same kind of reckless appraising that drove the lead up to the bust.Jay mentioned having cash reserves to weather problems.  

Cons might include increased inspections and regulations, potential for property damage, and the possibility of dealing with tenants who have more complex needs.

How local governments regulate STRs will determine a lot about the area.