If you can get grad students, they're the best.Another possibility would be advertising to tourists for vacation rentals, or otherwise short-term rentals if that's needed.  

As you rightly pointed out, it doesn't work with local mortgages so you'd have to pay pretty much 100% in cash, which doesn't give you a very profitable investment.What works in Mexico is short-term rentals, especially in the places popular with tourists.

But, again, it's just a small tourist town with seasonal tourist market, and there's a large prison outside of town. 

CC has about 5,000 residents in town, and it's basically a blue collar tourist town. 

As @David Krulac said, you need to check with the local Building Department and check the local Code to make sure you know what it would be allowed in that area.They have a lot of code requirements on hurricane areas like the Caribbean (at least on tourist areas).

3) How close to resorts, casinos, and other tourist attractions are you?

@Matthew Paul Although that IS a pretty easy way to make some quick cash (especially on the strip with drunk tourists) it's not quite as consistent as a monthly rent check/mortgage payment.

If you have a lot of tourist for example, you may not want to market your house towards plant workers because you wouldn't want your house booked for 3-6 months by 1 person.

If there's not a tourist or business demand for hotel, it would not perform well.It's not as simple  as property, you have to bring market demand into the picture.

There is also a Costco there and any other manner of stores, so I'd assume there would be a decent rental market.Another thing to consider is the summer tourist trade.