I reside in FL, so I would like to purchase in neighboring states if possible, but I heard Ohio is a great market.   

I'm seeing new neighbors of basically identical houses with maybe 50 or more investors in the community. 

Part of the reason coastal values haven't quite scaled to heights of neighboring states is the remoteness and lack of winter sports and high end amenities and entertainment, but that doesn't mean trophy estates, ranches and homes don't exist.

But the neighbors feel that there are two more adults for sure. 3. 

(for instance, this property has a backyard that could become parking; however, there is no way to access it unless the neighbors allowed us to use there driveway to get there).* Are there any other downsides I might not have considered with street-only parking?

Over priced, layout is awkward, junky neighbors, back on market/under contract multiple times, bad photos, bad timing(got buried from other listings, weather occurrence, etc). 

I also agree with No. 2, and I've seen some of my STR clients welcomed by their neighbors after taking over a ramshackle place that wasn't cared for.

Great hosts will be good neighbors, will contribute to local tourism and will pay their taxes and permit fees* A major area to improve on the proposal is the 1 hour time-limit for resolving complaints.

if there is appreciation, but you wouldn’t sell your current home tax free and buy a neighboring home to rent out, (There by raising your cost basis for additional depreciation and lower capital gains tax.) then it probably doesn’t make a good rental property. . 

My realtor told me that there's been happenings of neighbors turning in people who are doing STR's and getting investigated by authorities, resulting in fines & such.