There are challenges everywhere for different reasons -- weather, building codes, tenant culture, competitive market, high cost of labor. 

@Brandon BarrCheck out the STR competition and see if there are any local Meetups you can attend.

Depending on the current environment and competitiveness of the market it can sometimes be hard to find the same yield for the same risk. 

In the competitive landscape for real estate investor websites, the truth is low-cost SEO isn't going to get you deals that make you money. 

2) How often are they sending you updated rental comparables to discuss price adjustments vs making improvements to meet the competition?

I agree but it is (although waterfront) about a 10+ min walk to the beach and all of the competition has it included unfortunately.

@Jasmine HuNot sure I would go to Memphis and don’t know the VA markets.I’m in Greenville SC and love that market - midway between Charlotte and Atlanta.Booming population, income, and job growth - not as competitive as the NC and Florida locations.As you note insurance costs are in issue in FL and probably in Wilmington too.To add some additional context, one can invest successfully in most markets.For me, knowing your market is as important if not more important than selecting a market.

Aside from the risks I mentioned, there is the increasing competition and ST rental income is never truly turnkey or passive income, even if you use a manager.Even for you, if you sell for $1.75 million, all you'd need is to reinvest the proceeds of the sale at a 12.5% to make $220k so the relevant return is 12.5%, not 23%.

There is plenty of competition among agents, and I see a wide range ofcommission structures to choose from.

You'll want to get prequalified and know exactly what you can afford because the market is super competitive and you'll need to be ready to make offers quickly once you find something you like.