After acquisition, we furnished it, added a couple decks for a hot tub and solo stove fire pit, as well as a ton of string lights and were off to the races!

Purchase price: $465,000 Cash invested: $80,000 Checkout my Airbnb here: airbnb.com/h/madeirabeachoasisSalt Water Pool & Hot Tub: $60,000Tiki bar with electrical hookup: $3,500Mural: $1600Interior Furnishings: $6,500Exterior Furnishings: $1,500Monthly gross booking revenue: $8,000-$12,000

Any tips for navigating the competition in such a hot market?

I think what you're really asking is how to identify good value areas where rents may be trending upward but the prices still remain relatively lower.An important metric is tenant household income to rent ratio.

If I were down there I would think about setting up a food truck or 10 or 20 and serving breakfast burritos 24 hours a day with some good hot coffee.Just my 2 cents.

If you buy a hot water heater for the other unit, you can write off 100% because you have no personal use of that hot water heater. etc.

Their income is only 3X rent, they lack credit history, and the household is much larger, which could result in more wear and tear.

Just know that if you are moving somewhere to chase the hot market, it will only stay hot for so long.

Median household income for 38109 is $35k or ~$31k after tax

This looks like a very nice property, such a pretty pool, do you also have hot tubs?