Are they starting to lower their criteria in terms of proximity to competitors and cannibalization for new locations?

Well, actually yes if you know what you're doing you can build a locate good contractors over night.The key is knowing what to look for and how to screen them.

Does anyone in the Houston area have any good advice on locations or landlords to reach out to? 

You are allowed to consider things like the location, condition of the house, and even needing to reduce the rent because it's difficult to find tenants during a particular time of year. 

Hey, I'm a new investor, Im looking towards getting some units under my belt but know exactly where to start im located in washington dc and i feel like this market is little bit out of price range.

You can take an "A" neighborhood asset in most locations and fail the 1% rule but these assets will outperform on a cap rate basis a "C" location asset that "passes" the 1% test  if the analysis is not so narrow minded and includes actual expenses, cap ex and vacancy. 

They can take time with their search and be more selective about a property’s location and condition.

We thought it was an ideal house to STR - and it would have been just based on the location, and perhaps the experience of staying in an old home.

We thought it was an ideal house to STR - and it would have been just based on the location, and perhaps the experience of staying in an old home.

Probably has been the same in many other locations as well.