So those new hires will be going to work at a competitive wage, to who will take and fill the job for less than anyone else.

With airbnb listings being so visible, I also think it's a just a matter of time before all the munis start to go after these kinds of rentals for business licenses and hotel taxes, etc.Check out airbnb for other units in your neighborhood to get an idea for prices and competition.

If investors could use retail-level GCs and still make a profit, I'd have a lot more competition, as this would be an easy business and everyone in the world would be doing it successfully...

There is stiff competition during the auctions.  

@John Warren, I don't necessarily think it is a bad idea to get your feet wet with 2-4 units before scaling into apartment buildings.You should check out this lender in Chicago which lends 80% ltv for commercial units and can also include rehab costs in loan, AND provides a take out fixed rate of rehab loan that is very competitive.

Also, what is the competition like and what is the demand for STRs in your market.Horror stories? 

Also, there may be more expensive homes that have less competition and more upside that I don't even look at. 

I started to bid in other area that are less competitive, will see what happen.

There's cash flow up here in Richmond, and a lot of the Bay Area's negative perception (what they heard) allows a less competitive market for RE investors (shh don't tell anyone I told you).

That means lots of competition, but that wouldn't be the case if there weren't deals out there.