What areas do you recommend to people looking to invest above the bottom tier, but not luxury?

Catering to large group travel in luxurious 3-6 bedroom homes. 

In my location there is a wide gamut between “luxury” and basic so rento meter is no good to me.

So in my mind to go out and take the risk on one or two rentals under the scenario of minimum down maximum debt.. not a lot of upside if your that cash flow is everything and appreciation is gambling crowd.. appreciation is everything cash flow is gambling and or luxury... so that's one way to look at it.and if your counting on your 100 a month to buy your next property how does that happen take you years at 100 a month to save back up .. you still need money.. this is why the BRRR is about the absolute best way to do this.but people get impatient in saving their cash and when they put their 30k together they run off and buy a property instead of saving a enough to pay cash and BRRR.Now when you live in the area and your price points are basically the price of new cars.. things are quite different.now take that same 20k and put it in a crowdfunder or find a note at 35k like my clients do.. make 9 to 10% on it for 10 years and what do you have.. you have no recapture no risk of tenants.. 

Built a portfolio of rental properties in the US and become an expert for investors who wants to invest in the luxury Italian market.A presto!

.- In many cases, but not all, after you acquire a property, you will need to upgrade it to luxury status to attract bookings, as guests will want the bells and whistles.

Likewise, coziness or lodge style is extra appealing.

Go slow, if you have the luxury of doing so.

We have no vacancies, new construction is not even a factor and demand from millennials is not going to disappear either.Ultimatly the market has to reach an equillibirum between supply and demand, which can only happen with additional units, so new construction of affordable homes (not luxury) needs to ramp up and that will take years to do.I agree with your conclusion on SF that need cosmetic work, the market disregards the condition and pays more than it should, better to leverage the low interest rates and buy something that does not need remodel cash after purchase!

What category of homes do you think will be best off (Luxury 1.5-5mil homes vs Smaller 500-700k homes)?