But, as with any good, the downside is you are going to be paying a premium; there is a lot of in and out of state investment in Lakewood and I've found the market too competitive to cut my teeth on. 

Definitely worth finding out where they are allowed and what restrictions they have, some places are super Airbnb friendly and want tourists and investors, others have hotel owners who’ve been on committees for 100 years who shoot down competition, so they make it hard for airbnb to thrive. 

I wouldn't focus as much on the numbers while you live there (at least on your first one), especially in a competitive market.

If so, what is the competitive gain in proximity to competitors?

I can confirm that even for my residential clients it is extremely competitive to make offers and many of the homes are being bid well over the asking price.

The Charlotte Metro is very competitive right now and the pricing for the properties does make it difficult to find an investment that cashflow's well right off the bat (they do have great returns and appreciation when you do find a deal).

With smaller units, there is plenty of inventory and competition, not only with similar properties, but with hotels.

Strong market, lots of competition, off-season drop off is serious. 

Existing home sales reached the highest level in 13 years.In 2021, so far, the housing market continues to be competitive for buyers resulting in higher home prices and quick-selling homes.

Low price point, high cash flow, little competition?