Some people seem to get locked in to one place they find, or a place a friend or family member is selling without really evaluating the available market.In a small town in East Texas I would think your biggest risk is a big player coming to town that can absolutely crush a smaller player. 

You should engage with the local players in the commercial market i.e.

No offense, but telling people "that's not a good way to do it" and nothing more seems like a little league coach who tells his players "you're doing it wrong" but then doesn't give instruction of how to do it better.

The PMC I left to start my own PMC had at least 2 "preferred contractors" related to key players in the office so high rates and poor service fell on deaf ears. 

You'd have to do the research locally, market by market, to determine who the players are.

Con - lose any possible property appreciation over the next two years.

Now rural counties and can be a little different but like Jonathan says every market basically has their players..

Agree, STR are saturated but given the numbers, I expect unsuccessful players will leave the market.  

Even if you break even, you will lose money every month it sits vacant, when you need repairs, property management, etc.

The pref layer is a third party institutional player.