Seems the island is in economic decline due to the closing of a major profit center for them.

Look at past declines, and you'll see that they often last quite a while.

The natives saw many of these neighborhoods decline, as many who could fled for the suburbs.Then something started to happen in around the 70s.  

I can't imagine that property being able to break even if you are forced to convert it into a medium or long term rental if the STR market is either to saturated for you to break into at the moment or vacation rentals continues to decline as they had over the last few months.

I'm looking for a smaller multifamily (6-10 units), so this doesn't apply to me much, but cap rates have declined and are trading at 6s on average.

https://www.har.com/content/newsroom/Houston Real Estate Highlights in June:-Single-family home sales were down 12.8 percent year-over-year, the 15th consecutive month of slowing sales volume, however there were signs of overall improvement to the local housing market;-Compared to pre-pandemic 2019, single-family home sales were up 3.9 percent and were up 2.3 percent versus the volume five years ago, in June 2018;-The luxury segment, consisting of homes priced from $1M and above, saw its first gains in months, climbing 5.9 percent year-over-year in June; -Days on Market (DOM) for single-family homes rose from 28 to 45 days;-Total property sales fell 13.7 percent with 10,382 units sold;-Total dollar volume dropped 13.4 percent to $4.2 billion;-The single-family median price dropped 2.5 percent to $345,000;-The single-family average price fell 0.5 percent to $431,092; -Single-family home months of inventory registered a 3.1-months supply, up from 1.9 months a year earlier – the biggest supply in three years;-Townhome/condominium sales experienced their 13th straight monthly decline, falling 17.5 percent, with the median price down 2.5 percent to $217,000 and the average price down 2.7 percent to $252,845;-Compared to pre-pandemic 2019, townhome and condominium sales were up 5.1 percent.

Thanks @John Casmon @Chris TracyAdding: CrimeRental Space market fundamentals - rent growth, occupancy, net absorption etc.Family concentrationRentership ratesHome price growth to Income growthHome Mortgage originations / declinations btw: Found a good site for HMDA data by tract : https://www.consumerfinance.gov/data-research/hmda...

Areas that are good today can decline and sometimes areas that were once bad get better.

I declined to give an offer to that house.

Being that STR revenues are on a decline & the market is a bit saturated, it's a scary prospect.