I’m actually at my place right now doing some maintenance after a guest stayed for 2 months.

Stay up to date on all licenses and permits that may be required. 

If your student loans are only 3-5% interest, that's pretty good so I think it's okay to pay those off over time.It sounds like you're making good income with your current employer and there is room to grow, so I'd plan to stay with that job until you can pay your high interest loans off and save enough for a down payment for your first property.

If house hacking is not an option, you can try out-of-state investing and check markets you are comfortable exploring. 

Hello, I’m mainly interested in single family and want to stay in my local area (Tucson Az) mostly because I’m here and I know this local market fairly well.

Still stay active in BP though because there is a lot of wisdom in this group. 

I'd actually be surprised if you can get a bank to finance an STR - most of them IME stay away from those, particularly if you're a newbie. 

Numbers get inflated by international students who are not, on majority, buying homes or staying past their schooling.

I'd also recommend joining a local Indianapolis based REIA asap. the REIA will provide a group of investors who could get you some contractor recommends if you decide to GC the prop yourself.You said it "needs a little work done" but budgeted $50k so those two things kind of contradict unless the home is a larger home...just curious, what's "a little work", if you haven't had an inspection yet and don't feel comfortable evaluating the costs on your own?

Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.