Clearly, you wouldn't be comfortable investing there and that's totally fine.

The beauty of an Airbnb is you can offer it for sale while still renting it out.

I'd love to give you some insight into what the Memphis market might have to offer you depending on your goals. 

In the meantime watch the BP podcasts and use the BP calculator to start analyzing deals so you get comfortable with the numbers.By this time next year I would say if you do this you'll have 10k in a bank account with an ok credit which should make you eligible for an FHA loan to buy (1-4 Units) with 3.5% down and get you started. 

One thing about Florida, make sure you know what insurance will costs on a property before making an offer.

A 1031 also adds complexity and timing pressure.Watch Out For:Opportunity Cost: Renovations tie up cash that could go toward other investments or reserves.MTR/STR Management: These models require more time and effort than LTR, even without a property manager.Market Risks: WA properties may appreciate slower than expected, and higher costs could reduce your margins.If cash flow is your priority, option 1 (renovate and STR/MTR) likely offers the highest upside.

Hughes Private Capital offered a fund which was Guardian Fund LLC that purchased properties.

There are so many rentals in the area, probably on shared wells, so those people have either decided the STR use is okay or they are comfortable risking it.My intuition is that any actual disagreement over water usage could be handled with the other owner; but the risk would be if the other owner just doesn't like the STR and wants to use the well agreement as a reason to demand it be shut down.Any advice would be greatly appreciated!

These companies handle property acquisition, renovations, and management for you, offering a more passive approach.

However, though I don't know the actual numbers it seems like the home would offer so many more amenities I would enjoy as well.