While competition hadn't changed dramatically, we noticed some of the competition had pushed up rents on other 3 and 4 BRs in the area.  

Over the years, I’ve seen how a tight knit community sometimes means less competition and more welcoming neighbors.

What is occupancy and rate and how does that compare to your competition? 

But the diversification may be through a number locations of the same type property, as expertise in one area trumps diversifying into areas where you lack a competitive advantage.  

Some of my competition don't even bother with Airbnb. 

•Off-market deals: Creative strategies for connecting with potential sellers and standing out in a competitive market.

You want to focus on areas where you have a competitive advantage (you have lived there or you have family and friends there) and then compare those areas against widespread list of great areas to invest.Good luck!

i think less competition is primarily going to mean less margin per deal. 

That means that there is now competition between hosts and you have to give people a reason to book your unit over another hosts.

As others have noted credit unions are generally competitive on HELOC's.