Are there any particular markets or investment strategies you’re leaning toward?

Low value markets might be Pennies on the dollar like you allude to. 

My only tip is to stay on top of the market rents in your area.

If the sofa bed issue becomes a recurring theme, you could look into adding extra cushioning or replacing it with a more comfortable option, as some have suggested.For long-term stability and minimizing turnover, I’ve had great success with a hybrid co-hosting model—marketing listings to insurance and corporate partners for mid-term rentals.

If the stock market goes on a roller coaster ride you have no control.

How do I access a portion of that equity to fund the purchase of 1-2 more MFR properties in more affordable markets like OH, IN, MI, PA, TN, or AL?

I’m reminded of a buddy of mine who moved from Brooklyn to Scottsdale.. he initially thought the desert was just cacti and scorching heat, but soon realized there’s a thriving market here with pockets of real oportuntiy.Working with an investor who’s ready to spec build is a fantastic way to dive in.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

There are a lot of affordable properties in Knoxville, but the growth isn't terribly vibrant and the deman isn't what you'd expect for a city of that size and that close to the Smokies - you're mostly looking at college rentals for the meat of the move season, and the SF market, while it exists, doesn't really compare to Chattanooga. 

When you charge under market rent, the IRS deems that you do not have a profit motive and, therefore, disallows all rental expenses.