If there’s an existing mortgage on the property, a subject to combined with a seller second, or a wrap around loan, carry significant risk and possible negative credit impact for the seller (and buyer).  

About your concerns on rents: you'll be hard pressed to find an example in modern history where rents declined in a meaningful way, not even 2008. 

A combination could make a difference in terms of cash flow.What sort of improvements are you doing?

I think you may have very well narrowed down my strategy choices down to one of three; the BRRRR method (although this might be too much to start with for a newbie), the live-in flip that you mentioned (probably the most practical as I've been part of many different projects in the construction industry), and a combination of house-hacking/live-in flip (probably the most rewarding with a potential to swap between units as I finish one in order to bring better rental income).

It's easy to pass them all by and find one with amazing ocean views and bad decor, or better yet a STR with modern decor and close to the ocean.

My window had a film over it for privacy- bt I nejoyed it more than modern day bathrooms with the fans

@Jacob Sherman a combination. 5 that were mine. 2 in Sanford NC and 3 in Kinston NC all built and sold by me.

We own 2 stilt houses in ocean lakes, 4bed/4bath- did about 145k last year combined, its a great market but as others have said have to buy right

I plan on gutting the rest of the bathrooms and making them more modern than what's currently there. 

If you are looking to cash-flow in this high interest enviroment, I recommend you to do MTR ( medium term rentals ) combined with house-hacked.