I haven't built my war chest of funds yet to keep in reserve, so those first properties probably aren't going to cash flow heavily (especially since everything is more expensive with the last year or two of inflation).

For us, we only buy a certain type of single-family home rental in DFW, so a very specific gut renovation package, and only in certain areas that have been heavily researched and we also bring a renovation/prop mgmt competitive advantage.

So in theory, they should focus heavily on them ...

However with MACRS, the earlier years are still more heavily weighted than the later years. 

When you get into development, particularly larger developments like major apartment complexes and/or subdivisions, the game is heavily focused on political connections.  

Even so, I cannot be discriminatory and will rely heavily on prescreening.

Should I proceed with investing heavily in these locations?

When you do the math it seems most were heavily engaged before COVID and some even took advantage of the crisis of 2008.  

Market data research and boots on the ground are the unbeatable tools to find these areas and invest heavily there.

Document heavily with photos.