I bought Class C in Indy in 2023 (move in ready) and am losing money each money on what was supposed to cash flow on paper just barely $176 if no repairs were called in. 

if you buy a random property on Zillow and turn it over to people you have never met, you will very likely lose money, get frustrated, and set yourself back.if you're serious i'd pick a market and plan on making several trips there. 

You may recoup the money, but there's also a good chance you'll lose some.

I was happy to exit quickly without losing too much.

Your income isn't high enough for it to make sense as a rental and the closer you get to your residence limit the greater pressure you will have to sell it before losing your exclusion in whole or part. 500k right now can make $15k per year income with zero maintenance or tenant risks. 

I've heard too many stories of investors purchasing homes for STR use, only to find that they lose their permit or the ability to transfer it when they sell.

Quote from @Dan Mcguire: One reason not to invest, is not to lose money.

You don't want your calendar blocked at all, you may lose a booking from someone else.  

We need to close in 1 week and worst case I may need to buy all cash and refi to a different lender losing my property inspection fee the lender charged.Is this a townhouse or condo?

As long as I do not lose money I think I'll be ok with that.