Is this a sign that I should not invest in my local market and maybe should invest in other near by towns where there are many other investors invest there even though there will be lots of competition?

This isn't always true, but in this area, where the military BAH dictates a lot of the rental prices and it's a very heavy vacation hot spot, the STR is generally a stronger play.  

Made the repair and added an automatic dehumidifier to the basement.This year I had water in the basement again with the snow and then the heavy rains.

@Julie Marquez easier, but more competition from speculators outside of commuting distance...

Got a text from my portfolio lender today at noon that their funding supply was cut off and they couldn't fund... even after everything was signed and I was cleared to closeIf that's any indication of how cautious big money is right now - we can surely expect less investor buying in the near near term, which will definitely have a downward impact on prices in competitive markets.

Ive written 7 offers in the last week, and all were multiple offers, with the least competition being 5 offers.

Their lease renewal rate is 87%, making it very competitive with other markets.

Granted real estate prices are a slow lagging indicator and there has been so much pent up demand, competition and good jobs and low rates, rents are up and prices up over 6% in my local area. 

I would love some insight on what you think my next move should be.PS: I have priced it competitively against other properties in my neighborhood of similar size and quality.Thank you in advance for any guidance.Jessica

The Delayed Finance section of this blog post is one place to start to learn more about it.This approach can be advantageous by allowing you to be more competitive with cash offers and quick closings when you purchase, but a disadvantage is that you have to pay some of the same closing costs again when you refinance (though if you are able to purchase for slightly less with a cash offer it might even out).