Don't buy in the roughest neighborhood in the urban core.

Silicon Valley job growth in tech and manufacturing, low property taxes, and landlord friendly. 

The appreciation could be 2% per year on that low price point property.

Seems like a lot of folks prefer SFH, but I bought a Townhouse because it seems like it is easier to maintain (HOA covers external, landscaping, and neighborhood amenities).

I want to focus (I think) on family-friendly higher end neighborhoods. 

First there is no reason to buy a Townhouse "all cash" instead put 40% down and reap the benefits of an extrenly low rate, No PMI and the option to escrow.

I think there's going to be a serious thinning out of STRs because of the overall market and interest rates, and people just getting fed up with the platforms, unless one of the newer no/low fee platforms takes off. 

Plus funding is readily available and deals need to mature a few years before profits emerge, so why would a turn key provider not just keep a good rental property.Our inventory is so low in Milwaukee, that sellers don't have a reason to give a discount. 

The neighborhoods you look in will make all the difference in you analysis.

A good PM will be realistic on what to expect from Section 8 and help you identify properties/neighborhoods that will support your goal.