Many OOS investors set themselves up for failure because they don't truly take the time to understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That OOS property Class rankings are usually vastly different than the local market they live in.7) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.9) Class B usually also okay, but needs more attention from owner and/or PMC10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!)

My thought is that no matter how nice we make this house, we likely will not get a top-tier tenant, but if we purchased a few houses in a  nicer neighborhood, we would have the potential of attracting better tenants. 

In many cases, the bonus depreciation strategy can be a better alternative than a 1031 exchange, particularly in a market where it is difficult to find value in a replacement property. 

I would like to get a good feel for what attracts tourist, business people, medical workers and what kind of STR they desire.  

I've been looking at Norristown as a prospect for a first multifamily rental, and the cashflow and price points are  attractive.

Alternatively you can search the address online and on social media and see if you can find something marketing the property, or check wholesaler websites

These seem like a way cheaper alternative to build on a plot of land and a good way to get cashflow by year 1 instead of going the traditional home construction route.

I think this would depend greatly on the type of location you have and the tenant type it would attract. 

im looking into other alternatives for purchasing as well as i currently do not qualify for conventional financing.

My gut feeling is that something like this could be great to have in an attraction-dense area for a luxury STR, but it's usefulness would be diminished going outside of that specific use case.