There is still very high demand in many markets with rates coming down and lower than normal inventory..

I expect the percentage will start to shift lower in the next few years.

And also, since I am the borrower, am I correct in my understanding that I would be subject to a tax on cancellation of debt which would lower my total IRR.I saw many years ago (like in 2017) on BP that note investors were shooting for 10-12% IRR in a zero-interest rate environement. 

The good news is that in these types of cities, there are significantly more properties for sale (albeit at lower price points), and you can gain traction with a few houses per month more easily than in tougher markets like Tampa or Dallas, for example.

So, they are missing out of 200 dollars a month for at least 4 years (and maybe longer depending on where rates are when the PPP rolls off) so that is at least 9600 in opportunity cost by taking a slightly lower rate at the beginning. 

Having a budget in mind is important however with timing especially at higher borrowing costs the lower end of the market or the "affordable housing" runs the most and runs hard.. has that also happened in Austin ?

To add to this, a lot of Wholesalers or agents from New Western deal specifically with lower class Real Estate, because like Stuart mentioned it is the lowest barrier to entry and typically easier to convince sellers of that property class to sell under their conditions. 

What we found out doing our research is that in Costa Rica, large vacation rental properties that are different than other properties can create a good return because the competition is lower and also money lending can be a good return because you can charge high interest with only a 50% loan.

How about making it harder to sue the insurance company and can lower their rates? 

I wouldn't count it out but it's not a C location, it's lower.