If I was purely investing, I would consider those areas too.

Honestly, the strategy in my opinion is still pure speculation and bets on the fact that home prices will keep rising.

I use excel, pure and simple.

I already own and rent out 1 house, a 300K, 4 bed 2.5 bath generating about 1900/mo @ $220 "profit" (nowhere near the 1% rule)  - I rented this house purely as a means to purchase a better home, and as a necessity to forgo a contingency when buying.....Fast forward to now, with my 401K proceeds, this summer I bought 2 more homes, here is the breakdown;Home #2 ,  a 1947 Puyallup home,  3bd/1ba nicely completely remodeled w a Olympic mtn view and close to everything , Paid 250K w 20% down, payment ~$1300 @ $1850/mo $550 profit (not 1%)Home #3, A 1908 Tacoma House w peekaboo ocean view, 3bd, 1ba remodeled in a gentrifying area, paid 185K w 25% down - payment $950, rented @ $1750/mo $800 profit (not 1% either)both houses were long term flips by the seller and I bought them turn key, The market here is red hot and I was lucky to get each house, most everything on my interest list sells within 1 to 5 days, I go in with the down payment and waive inspection to get the deal. 

The developer's fee is quite literally a fee (or "bonus") if you will that is eligible as part of a LIHTC transaction at time of initial closing.You would not be eligible for a developer's fee purely due to a loan assumption.

If you are looking for a pure STR property run truly as a investment property, you will probably be looking more towards a 20% down minimum

If you happen to make a trip to San Diego, first round of drinks are on me!

Vesting the property in an LLC is purely for the additional liability protection but you are always on the hook with the bank on the loan.

@Justin Wotton the obvious difference is that your have to put a lot more down to buy a property as a pure investment.

If you were thinking that you could use an FHA loan on a rental which is a pure investment property, that is not allowed.