A few good fundamentals when evaluating new markets are; job growth, rent growth, job diversification and population growth.

But we could easily find people to rent out the whole house at $2800/month (which is $700/room).I'm curious how the numbers are different for people who say they have been able to make more by renting out houses by the room.

That way in case things go terribly wrong with Tenant 2, you can re-evaluate plans on Tenant 1.

Power could easily be brought in off the highway which isn't far away and a well could be dug for water.

Doesn't mean it can easily be done, however its the gift that keeps on giving as opposed to you "renting" your marketing and keep buying lists and all the different softwares.

Personal income can easily support loans without rental income.

I can easily take phone calls or collect rent using a free online service or have a check mailed to me. 

If the size of the lot is decent you can easily do this as the lots in the new subdivisions are very small.

When you are evaluating appreciation, ignore the COVID period.

You can easily get reciprocity licenses in those states so that you can become the broker for investors in those states.