However, if it's truly one of those communities that has very high crime and difficult to attract any descent tenants, it can lead to disaster.

Before the pandemic, Magnolia alone (not including Baylor University or any other Waco attractions) was drawing in 10,000 tourists a week to Waco and a total of 1 million tourists a year.

You would continue to defer all of the tax and receive potential cash flow until the market becomes more attractive for you. 

Regarding the new construction, often this attracts more homeowners.

I think that the tax perks from having a rental make this more attractive than it might initially seem, but I have only done some quick internet searches, so I could very well be overestimating the upside and underestimating the downside??

@Bill HaleyHad a meeting this past week with some individuals who raise some serious $ and discussing what works and does not work in an offering and one of the things these people were saying is real estate offerings using crypto and blockchain / tokenization is not attracting many HNW individuals.

I will look at a few factors, rent for area, total mortgage payment with property taxes( which can be crazy in Detroit), investment in neighborhood, I like looking into places where they are building homes and apartments that attract young professionals or families , and also looking at potential to make a single family home into a duplex or something can add an adu or transform a basement to a studio apartment!

Consider saving the 40-60k and maybe just spend a little extra on cozying up the place and making it more attractive. 

The property surrounded by a number of restaurants, and attractions.

The second of two homes I bought when I sold the rental, I would have bought a more expensive one as the one I got was close to the university and tended to attract students which had higher turn over (though it may also be my local market).I'd also look up how to do a 1031 (I think that is what it's called, I'm not in the US) where you defer capital gains taxes on rentals by buying another within a set period of time.