-------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

At this time I manage and renovate majority of all my units to keep cost low but most likely not the best use of my time although I'm skilled at it.

With only requiring 5% down the money needed is very low compared to the Cash On Cash return you could make on a small Multi Family. 

The two are almost entirely different markets in terms of price points, returns, tenant quality, and overall investing strategy.

But with inventory being low and you having a guest house, it might stand out.

The quality of people in his community is exceptional - yes there are world class experts, yes they hustle and are brilliant.

Don't be suckered into buying cheap properties - unelss you know exactly what you are getting into.Here's some copy & paste advice that applies to just about any Midwest rental market:--------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

We came in low with our offer, but were willing to skip the inspection (which had already been completed before we offered) and stipulated that we would close in 20 days, which was super valuable to the seller.

Cash flowing markets, low taxes, landlord friendly and large demand in renters. 

Owning locally has helped me accumulate considerable equity with a relatively low initial investment.