Cash flow is crucial, especially if you depend on it for your monthly income.Selling the property for $170k, which is above its market value of $120k, might seem like a good deal initially.

Every market will vary due to labor costs. 

I am looking to do AirBNB Arbitrage in Lancaster area as it is the closeby market to me.

I want to be able to find potential markets/listings nationally based on the return.

Even though your market might prove expensive, I would exhaust all options before ruling it out.Truth is, you have a unique competitive advantage in your market.  

I have warned countless people that the "new", "Cheapest", and "shaking up the insurance market" carriers typically come into the market under priced, have a wave of claims, then they either jack up premiums to survive or fire their staff to keep heads above water.

I chose to invest in 1272 Lakins Rd, Etna, due to its potential in a growing market.

STR markets are tough and change fast, best of luck!

The area is way to pricey for my budget so I do all my investing in midwest markets (Memphis and Detroit mostly).

If you are trying to do this in Newark, you need to know the market of that particular set of blocks so you don't overdevelop for the farm area.