Indy is up on average 3.7% YoY in median sales price.Inventory on the market has been steadily rising.

However, I'm unsure if I'm suited for the short-term rental market.

I'm not interested in secondary market loans as they're a totally different animal.

Now I'm being told that the interest rate is more realistically going to be 7.125-7.6%, which makes the purchase significantly less desirable.So my question: Is 7.125% market rate or is this something I should be looking into?

Once you transition one of the homes into a full time rental you will reap that benefit by filing a schedule E at the end of the year.There are a few loopholes to consider like calling one home a "Vacation/Second home" which allows you to pull out 80% LTV with a better rate. 

Of course i am partial to exchanging into the midwest like the KC market but everyone has their own strategy.

You would need to choose between what is more important.... owning the listing or owning a STR that is dominating the market it's located in, by maximizing the tools available to manage the property.

Clark-Fulton seems to be a very profitable market.

Welcome to BiggerPockets - Huntsville seems like a great market for rentals

However, the outline below is fairly standard across most business plans.Executive Summary (Objective, mission, keys to success, etc.)Company Summary (Goals, operations, ownership & personnel experience, etc.)Market Analysis & Strategy (Approach for finding deals, investment strategy, etc.)Financial Plan (Startup costs, leverage, reserves, etc.)Exit Strategy (Timeline or milestones for exiting or refinancing investments)