You are betting your money on the neighborhood and the property (and the client base that will attract), hoping to produce a return greater than what the S&P 500 would produce over time.

A few questions a lender would ask you based on this post.

Based on what you shared, if you are competing with wholesalers you are likely in the most competitive price point space on the MLS.

But this need to collect intelligence on your customer and control the narrative isn't, I think, here you want to be.

I'm open to hear thoughts and opinions on best markets in those 2 states (or any other promising markets based on the criteria I outlined above) that I should focus on as a first-time investor.

All that being said I love living in the area it is close to Destin and the bases and very close to the water, much of the city is walking distance to a the water. 

Selling you a product is easy but relating to you based on their personal expierence is not.

Exploring creative financing options like portfolio loans leveraging combined property income, hard money loans based on property equity, private money lending from investors, or negotiating seller financing for new property acquisitions could offer viable alternatives to support your investment goals.

Thousand Oaks, Stone Oak, Encino Park, Bulverde, etc) Schertz/Cibilo (not far from military bases, easy access to Austin/New Braunfels, up and coming/ many new nice neighborhoods) If the price range is  $175-250, I would look near Sea world and the west side.

Okay just to keep things in perspective, I think Pacific Heights - fictional Hollywood thriller not based on a true story - is a great example of  "1990 in cinema" or "Films featuring Melanie Griffith," but maybe  not a great example of what happens when you wait a day or two to figure out a best course of action to deal with people.