STR market here is very saturated but I'd hardly say oversaturated, there are so many people that come here summer (hiking and other attractions) , winter (skiing) , and fall (leaf peeping) and it's only growing.

Especially when most of the homes are already STRs and there are geographic constraints that prevent more expansion, which makes it a relatively safe bet in regards to market saturation and occupancy. 

Even if you find a great property and location there is problems with price, interest rates and saturation of many areas.

It's not complicated math to comprehend market saturation.

I did make a lowball offer that was refused so now have to decide if I want to try again.A few things -The area is pretty saturated with STRs and there are newly set regulations in place. 

Market saturation and comparable property type(s) can also be responsible for lower revenue totals here on the Island.

The markets you mentioned above for small multi family are some of the most competitive, saturated markets in the state...its not all bad as there are certainly opportunities (like anywhere else) however I think you will need to change your strategy or find another location for the plan you highlighted above to work. #2 - Since you mentioned your goal was to buy a Duplex, I am assuming you are planning to purchase the property as a "primary home" with the option to do a 3.5% downpayment FHA or 5% downpayment Conventional loan and then live in one unit while renting out the other unit..can you confirm this is what you are looking to do?

I've been really interested in some properties I've seen in Columbus Ohio, but some research I've done advises against it because the market is over saturated with multi family homes.

Wholesaling is very saturated @Augustine Maldonado.

Not to mention if a market were to become saturated with units, multi family would be the first to experience vacancy.