More competition equals less income per cabin.It's possible you can grab a cabin at a low price from someone who bought at the peak in 2022,  Just do your homework and be sure you can make your ROI before you enter this market.

Sellers generally recognize that some assets are likely mispriced, whether too high or too low, because the sellers knows less than local investors and are likely relying in large part on BPOs.   

The risk for investors became low enough for them to be really interested in the project.

I know Virginia Beach is attractive but that average price for Alexandria strikes me as rather low.

. - Low-income areas = High cash flow, low equity growth - High-income areas = Low cash flow, high equity growth - Median-income areas = Average cash flow, average equity growthFor me, median to high-income areas are where I like to focus.

Low down payment (3.5%) is attractive, but comes with mortgage insurance and might not offer the best rates.

The problem is these homes are 60-120 years old and because of the low value neighborhoods, nobody has ever made any capital improvements beyond duct tape.

With good credit and a relatively low LTV, they may price comparably. 

I do low ball don't get me wrong. 

I think the dead giveaway is the rate and points. 5% is too low for anyone to lend now.