If that's the case the only pros would be for the competition.

In the end how does it stack up against the competition on a risk reward basis?

You will not have as much competition as you would say in DC. 

The person who I work with in NY for insurance is extremely knowledgeable and has very competitive rates.

Once you touch the MLS, you are under a different set of ethical rules and assignment fees don't work, but your buyers list has just went global.  ...but then again, why did you get your license in the first place?  

I would price yourself lower than the competition since your guests will be dealing with your personal property in the house, but also because you won't have any reviews on Airbnb yet, which could scare away a lot of potential renters.

I just had a tenant leave after 5 years, so recently listed mine for rent, and there is a lot more competition than 5 years ago. 

Of course after renovations are complete I will be going up on rent to be competitive with the going rates.

What can a new investor do to acquire a house in a competitive market? 

Look at how many people these days are into real estate investing or starting website, there is a ton of competition and it's getting just as back as looking for a decent stock to trade.