In addition, if you bought any of these below market, you might capture some equity upon purchase.My wife and I do a mix of syndicating and limited partner investing in apartments and have had great returns. 

When you mix money and friendship , it rarely comes out good .

You're mixing up ROI and ROE and it's the ROE that counts (David Greene has explained that well in several podcast episodes)!.

Lastly, renting by the room is a nice mix of increased cash flow and long term appreciation.

Plenty of cash flow for any errors.Even our product mix and locations we do risk management up front.  

And what is the mix of guests (couples, entire families with kids, grandparents, parent visiting college students, hikers/water sports, college football fans) maybe theme it to what people think of when they go there or provide things that would enhance their stay (paddle boards, video games, theater room, kayaks, really cool beds that have slides etc).

Don't mix the funds with stock market.

Is there a "sweet spot" distance from a highly, mainly urban area?

For our clients at Carrot, those who are seeing the best results are doing a mix of things. 1) Most choose to do the work themselves using our platform, but like you said, it is work and takes time and isn't right for everyone.

I also wont get to cash flow immediately on this like I have on my North Charleston rentals but am at the point that I'm trying to build a mix of both types of property.I've also noticed West Ashley / Johns Island struggles to reach the 1% rule.This is correct, direct to seller is the best way to find this or its pretty rare without a large downpayment or STR.Are others seeing this as well or should I find an agent who is in the loop w/ off-market opportunities?