If you're going to start in a market you're eventually going to live in, I think that's a stronger case for that market."

Will be difficult because you currently live in the property . is the 2nd unit livable and just looking to renovate ? 

Buy and Hold investing is a great avenue to begin with as most people live their lives off of residual income. 

I'm also unsure how it would free up more housing/help because those incentivized sellers would likely be purchasing another home to live in.

If you are buying to live in, you could also do FHA with a cosigner.

However, it's a deal in a different state and during the Facetime showing, I could tell the tenants were gross and makes me think they don't care about taking care of the place or their living conditions.

All the rest live in other states or countries.

You said that you are applying for an FHA loan so it sounds as though you'd be living in one unit. 

We literally walked the property on live video with you and showed you everything you asked to see.

A lot of the popular areas in Charleston proper that are not licensed under the old laws now require the owner to live on the premises to obtain an STR license.