The only caveat with that loan is that you'll need to purchase in a low to moderate-income tract. 

I haven't filed a claim all these years but insurance is for the what-if and to be used for the high-ticker items, but chances of damages exceeding the 5% is low.  

I have purchased the following books:ABCs of Buying Rental Property The ABCs of Property Management The ABCs of Real Estate Investing The Advanced Guide to Real Estate InvestingThe Book on Investing in Real Estate with No (and Low) Money DownWhat order do you recommend reading them in?

I made a low offer and it was accepted.

I could not tell from your profile.

I would search for a property that has a low interest rate Fha or VA loan.

If you are very conservative purchase a fixer upper so you can force equity and hopefully have a low enough payment so that you can LTR the property or even sell for profit should the STR avenue not work. 

You can make a low-ball offer on a small non-performing 2nd, that might about to be wiped out at the foreclosure of the first and then negotiate with the owner before auction and buy it ahead of time. 

I know the area like the back of my hand and believe Indiana has tons of upside to invest in.I came from a low-middle-class family of teachers.

Your profile says that you’re 18, and that will be apparent when you talk to property owners.