I am not sure how saturated that market is (both with properties and managers) but the first question you should ask yourself is is the market underserved and how can you improve the current offerings to local owners? 

I have also really considered medium term rentals, however it seems that the market is somewhat saturated as many rentals have been dropping prices significantly when I look through Airbnb.

The Packwood, WA market may be officially saturated on STR's. 

Pete and Clearwater still work well for mid-term rentals despite some short-term rental saturation.

But if you know what you're doing in finding the properties and want a fixer upper, it's doable.I will say that the multi-family rental market is pretty saturated here though. 

There's lots of opportunities in developing neighborhoods, but also seems a bit saturated at the moment.Also, definitely budget security (remote control cameras, alarm system, etc.) for your properties, as there are a lot of people who occupy themselves by breaking into houses and stealing anything they can sell.Lastly, there are a ton of contractors looking for a quick buck.

Here's my takeaway from the market:Smaller, less impressive cabins are pretty over-saturated and unless you have a big view (or water frontage) to really make you stand out, you will struggle.  

Unless you are looking at upper tier properties, you will likely be disappointed in Gatlinburg currently due to the over saturation in that market.

Also Texas appears to be saturated with inventory and more being built.

So like I am not going to run out and buy a bunch of lots in Lehigh acres or coral gables FLA which is saturated with new builds and un finished new builds were the  FOMO got going big time and builders have failed to execute and left investors high and dry.