What is your risk tolerance?

You’re absolutely right about the market potentially shifting, and this is where those who are ready to act and think creatively win big.

Purchasing a STR in a somewhat sketch area is a terrible idea and as others have mentioned, is going to open you up to potential issues. 

They are far more common now and harder to find models without but:1) these add cost to the purchase price2) they don't bring a lot of value3) they can leak or detach and damage the propertyI own around 50 doors and I cap off the line at the wall or in the basement with a valve and a cap so the potential for leaks is 0.00001% :-) 

There are risks as you are tying up your primary residence in the project.

.- Stick to B and C+ Areas: These neighborhoods balance affordability and tenant quality, minimizing risk.- Analyze Properties Remotely: Use tools like BiggerPockets calculators to evaluate deals.

but, it's not going to be "profitable" for several years, depending on how you define profit.you'll have a down payment, then closing costs - which new investors always seem to be shocked by - then potentially some costs to get a property rent ready, then you'll pay a month's rent to get it listed and rented out, then you'll likely have some repairs after the tenant moves in.  

Asa result, we are seeking alternative methods for acquiring off-marketproperties.While we havedeveloped a robust system for identifying and pre-qualifying potential landparcels, one of the major hurdles we face is reaching the property owners.

Cities like these offer untapped potential without the intense competition found in larger metros.3.

Post on local Facebook pages for contractor referrals, go to local REIAs, and ask your potential agents and PMs (even if not using a PM at first...you may at some point).There is only so much that service providers can do and many of them are far from "experts"; so, be prepared to be your own expert at being willing to figure stuff out as you move forward.