This person may be right that in his local area the commercial market is saturated but it doesn't mean it's a bubble.

It doesn't take many loans in So Cal to saturate even a wealthy person. 

We really don't know if you are reaching a saturated list that's not hungry to sell, if there are too many others mailing the same list, if you're letter turns people off or indifferent, or if you don't touch them with enough frequency. .Is your letter targeted to a given problem or just a generic "I'll buy your house for cash (that I really don't have)". 

There are ~4000 STRs here in Denver and the market is already getting saturated. 

Charlotte seems to be over saturated now so looking for smaller markets with bigger potential. 

However, the city I'm in is now saturated with newer student apartment buildings so filling the building has gotten more challenging.

Worcester is generally my go-to but it has been over saturated in terms of rentals as of late.Victor

Thank You everyone for the replies ,  I know it has become more competitive due to new York city conglomerates being interested in the Columbus Ohio market which is much better but I am also interested in Dayton as it  is less saturated . 

My reservations are that it will be difficult to find a location that isn't already saturated.

Options in a market saturated with investor owners - The real estate market is a cycle.