Then again it may also have more competition and therefore be more difficult to close a deal. 

Hi Ebony, I know from experience, my niece has been trying to find a deal in Orlando, it is very difficult, there is a lot of competition, you are hard pressed to find something lower than $120 sq ft. which makes it difficult to meet the 2% rule.

My wife and I were focused on SFRs until we saw the competition and felt that there was more upside to chasing the multis.

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.

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.