If your goal is cash flow, choose out of state.

Some get it done, some choose to leave willingly and some will put up a fight...you just never know these days.

I charge more than my competition and don't give discounts, but people still choose my company because of the value we provide.

For example, in a lot of neighborhoods closer to downtown San Antonio, I would go with the 1 BR, but near any of the local universities, I would choose the 2 BR option.  

Your property should have a theme or design that makes people choose it from the crowd.

Ask questions to see where their heads are at and then choose which one is the best one to put on your team.  

A few more things to consider: unique/new liability concerns, roommate mediation issues, juggling multiple sub-leases, utilities, allowing tenants to screen/vet/choose their roommates, etc.

@Adrian Beltran This questions is often asked in the forums... here is a "choose your own adventure" type guide to help you make the best decision for you.  

the answer is yes, but I choose not to make it so.  

A lot of people who worry about working with drywall choose instead to put in a dropped ceiling with acoustic tiles.