Before you choose anyone you could ask how their fees are structured (I keep it super simple) and what their response time is (you can see this on AirBnb).

I like how you describe choosing which area you had to prioritize…getting units filled made a lot of difference on how easy or difficult it is to continue.

This book really opened my eyes to the possibilities of out-of-state investing and how to manage using technology - like you, I also live in an HCOL area but invest out-of-state.Best of luck and good choice choosing to learn more about RE!

So, whichever market you choose, make sure you have a team that is going to support you throughout the journey.

To your first reply: I could do this, but want to give the tenants incentive to choose Option 2, which is why I would like to provide the "rent discount" with this option. 

Create a Buy/Sell AgreementA buy-sell agreement, also known as a buyout agreement, is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business or chooses to leave the business.

The problem is that anyone who can afford to pay more rent than the typical $850 a month would never choose to live in such a high-crime area.

Whatever you choose to do, mailers, cold calling, drive for dollars, just know that most people try it, don't have instant success, and then quit. 

Meaning, if City X cash flows better than City Y, but City Y has people in it that you know, then choose City Y. 

If you want to survive off that 200k you will most likely to choose an active strategy such as flipping or wholesaling to generate your living income.