So I looked up our occupancy compared to market occupancy where our STRs are located.  

When people look for a place to rent, they compare what is available at that time and choose what, in their opinion, is the best option for them.

.#1 we have relatively few duplexes in the whole North Texas area it seems, compared to other parts of the country. 

In addition, hiring qualified personnel for maintenance/office is a challenge and maintenance/repair costs are also higher when compared to Texas.

It actually doesn't matter if you are purchasing for cash or financing - it matters how much the purchase + reno will cost compared to the after repair value.

I find the larger houses are more difficult to find good market rate comparable rents and they will likely attract applicants that bring more wear and tear. 

One example we used for our kids that was probably the most eye opening was, we compared our house to our neighbors - we built our house 10+ years ago and told our kids if we did not do what we did 10 years ago, we would only be able to afford the home next door.

I'd recommend researching areas to see that they have:- Low unemployment- High demand for housing - relatively low inventory- local job creation/booming local economy- high avg/median income- increasing population- low average days-on-market (DOM)- history of rent and property value increases YOY- low crime- highly-rated schools (or above average)I'd compare the target neighborhood to surrounding neighborhoods and/or nearest metro areas. 

Check your numbers - what is the market value of the property using comparable sales?

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.