But the answer for everyone may differ.Here are the personal attributes I see in those able to achieve a higher than market ROI, enough higher to be able to “scale”.1- Knowledge of real estate principles, real estate law and real estate finance2- Minimum 3 -5 years full time, or near full time experience directly related to real estate investing3- Ability to utilize technology for increased efficiency, capacity, and accuracy4- Excellent hired legal counsel and excellent hired marketing help5- Established method(s) of obtaining consistently high QUALITY deal flow6- Ability to manage and choose people who are NOT employees: Attorneys, Appraisers, Mortgage Brokers, Real Estate Brokers, Title Companies, Surveyors, Marketing Specialists, Accountants, Contractors, Consultants, Property Managers7- A VERIFIABLE track record of success8- Ability to identify, analyze, and negotiate a deal that can be “worked” for “enhanced” ROI9- Some type of competitive advantage; for example for me it’s my ability to analyze and identify mortgage loans that are actually less risky than all other lenders believe (on the investing in debt side), and on the real property side it’s my ability to analyze”pull the trigger” with LESS information than other investors need,  combined with the ability to pay cash, or raise significant capital almost instantly as well as being able to obtain loans at the lowest prime customer bank rate with no recourse or personal liability.  

In our experience that is what carries the day along with the area and the STR restrictions or lack thereof(a whole other conversation) that deems the valuations.Airbnb and VRBO have thought of this and are way ahead of it, we scaled quickly using these platforms for two high end STR that book out great, once we established that, we created a direct book website and are slowly pulling our repeats from that.

Austria, Germany, Luxembourg; these immediately come to mind as "ancient" developed areas in contrast to the "infant" that is USA, and they seem to be doing very well, very efficient, very well setup and established across the strata's. 

I started looking in surrounding areas and found that the markets less established or still rebuilding had much higher cap rates.

Its good that you've already established some target markets, I'd recommend diving deep into 1 or 2 markets, then branching out. 

@Mindy Jensen this is what I do until I've established a good relationship with them. 

Than AFTER that base-line cleanup action is done which part of it is to establish access for all others, than things get into the next lower level of details. 

But then because they have established such credibility, they can easily buy now with great rate and terms from lenders because they have the track history. 

We try to work with the same subcontractors as much as we can - it's the only way to establish a long term relationship. 

Dig out and then in and go find that next deal if your still game.I would suggest out of state investors that are priced-out of their own markets work to establish partnerships with other similar cash-strapped investors in their own markets.