Real estate has some advantages over other investments, but ultimately the goal in all investing is to maximize return relative to perceived risk.  

No different than any other natural disaster... hurricanes in Florida, wild fires in California, Volcanoes in Hawaii, etc.Regardless, your property insurance will rebuild your house if it is hit by a tornado... so ultimately there is no reason to avoid the area because of that risk in my opinion.  

Ultimately, if you have a property w a 2.5% rate, chock it up to a win. 

Ultimately, it sounds like the decision would depend on the interest savings you'd get.

Aim to purchase and renovate a property for resale, with the ultimate goal of acquiring additional income-generating rentals.

This will ultimately leave you with more to invest into real estate in the long run. - Gives you the "hands on" taste of investing, on your doorstep, and you will be able build up sweat equity in the property to lock in higher rents and appreciation for your property. - You can then potentially leverage the equity in that house hack to invest in more real estate. - Tax benefits on the income side of the property (Consult with your CPA) It all really depends on your risk appetite, I've heard there are good opportunities to make quick cash in AirBnb rental arbitrage, but personally the risk is a little high for me.

I recommend you read The Ultimate Guide to Grading Cleveland Neighborhoods before spending any of your coin here.

If the tenants are ultimately paying the late fees are just bonus income for you.

It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.Let me know if you have any questions.  

It goes up and down but ultimately settles at inflation adjusted prices or .6% above.Makes you question whether real estate is worth it as a LONG term investment.