Not sure how many PMCs you've had bad experiences with, but we'll take exception to:"Then do a thorough research on tenant applicants (note: leaving this to a PM may be hazardous to your financial health)".BP seems to have more threads about screening mistakes by DIY landlords as opposed to PMCs.Now, if you'd have mentioned Maintenance, you'd get no argument from me:) Even the PMC industry acknowledges maintenance as one of the biggest challenges.Rereading my post, I kinda see how I sounded negative toward PMs.  

Potential redevelopment or ADU play. 

There are never full photos of the mechanicals and basement and roof line so you will never have even a bare inkling of what the potential repairs will be.

Strong Potential for Long-Term Capital AppreciationGermany's real estate market has demonstrated a strong track record of capital appreciation.

If I pay it off, I could maximize cash flow earlier, reducing financial stress and allowing me to focus on other ventures or simply enjoy life more.On the other hand, I know some people advocate for keeping cheap debt and using the extra cash to invest elsewhere for potentially higher returns.Why I’m leaning toward paying it off:Security: No debt = peace of mind.Financial freedom earlier: A fully paid-off rental would give me a significant monthly cash flow?

I am a firm believer that if someone raises money they should have some sort of experience and also financially have a strong foundation themselves.

Look for properties with high cash flow potential, good condition, and room for improvement, such as value-add opportunities.

Prioritize your financial stability.

Are there any key factors or metrics you look for when analyzing a neighborhood's potential?

Narrow your top cities, build a local team, and refine your financial analysis to position yourself for success.Good luck!