Managing rentals when you are nearby can be challenging but out of state is pretty tought.

Laws, taxes, insurance, adventure, new challenge, grow skills, etc. 

Our portfolio currently cash flows, but cash flow isn’t our top priority right now since we plan to use this portfolio to supplement our retirement in 12 years when I leave the Army.My biggest challenge is committing to an out-of-state market.

Challenges?

Challenge is where is their motivation to properly screen applicants and get rid of nonpayers?

Securing financing is often one of the biggest challenges new real estate investors face.

@Shaun OrtizEvaluating distressed properties remotely can be a little challenging but it's doable with the right tools.

Thirdly, financing and potentially selling later on could be challenging again with the part of the plan being on a campground. 

The challenge is to figure out:  do you have a distressed syndicator or a good syndicator?

But southeast and midwest cities (not including Chicago or Miami or most of Florida) are your best bet I agree BRRRR are more challenging than prior to Q2 2022, but I do not agree with your premise as to what market is best.