One has to do with location and competition, and 'marketing risk' vs 'reward'.

With them, you are also sure of paying the right price of the location as they give you the right competitive pricing.

As the market has been getting much more competitive we have started to see a shift in the leads we are getting moving to the low end.

I know that we cant compete on local knowledge or costs of funds - so we have no competitive advantage.

I suppose there's no way to know what areas will have less competition?  

Who is the most competitive with rates?

My wife has recently put in several offers for clients looking for MF in Phoenix and there is a lot of competition to get properties, cap rates are compressed right now.

I was thinking if I focused on a sub-market outside of Nashville, I might be able to avoid some of the competition that might come with dealing in the hot areas like east Nash.

Hopefully it will make for a less competitive bidding process.

For example, a brand new class A property will probably not greatly impact a class C property as theyre competing for different rental populations.You should do your best to determine how competitive you'd be for the same renters as this new building to begin evaluating the impact it would have then study your local rental market.