However, I've observed that there are two polarizing opinions about these markets: Some investors say that they are still finding success in these markets, and some say that these markets are too competitive / over-saturated with investors.  

I’m a bit concerned about the saturation of the market as far as tourist rentals go as I’ve read that many Turkish and Russian investors have been buying already.

Should I focus on any particular deals or criteria through MLS or just saturate my market with offers that I could afford the downpayment?

It will be their first home purchase and they're fully financed, I may end up purchasing some units in that area as well as the LA market is saturated...

@Alec Khlebopros- brainstorm and come up with 10  locations ....do some basic reserach to see what  sort of STR saturation is present  ...if any places on the list  seem to  have low  level of  Str - explore in more depth 

Instead of spending your time analyzing comps in an area already saturated with investors, I would figure out what makes that area attractive.  

My only comment would be the STR market is saturated!

(if you have areas I should look into with approx rents please let me know).I hear that the dallas area is over saturated with investors but I assume i should still be able to find good deals.

You don't want to invest in an area that is already saturated with the same product type you want to build.

STRs are getting a bit saturated in Seattle & I'm noticing a slow down in the properties I'm managing out here, but on the whole, Seattle is still a pretty good market for STRs.