A duplex could be a great compromise that lets you start small, build equity, and learn the ropes while mitigating some of the financial risks.

If there is anything I can offer, please feel free to reach out.

Better than any other data + dialer combination I have ever heard from anyone.There is a 7 day free trial.

Explain your concerns about the property's flood zone status and see if they are willing to release your deposit or reduce the sale price to account for the potential risks and lower property values associated with it.While $5K isn't a trivial amount, sometimes avoiding a much bigger headache down the road is worth the loss.

Understand the Process – Before lending, make sure you have a solid grasp on the private lending process, terms, and risks.

Some are owned by my ROTH IRA and are making tax free cashflow.

I have so much to learn starting out I don't want to add any unnecessary risk or headaches dealing with out of state properties or long distance rentals. 

There’s no one answer, a lot depends on the investors personal financial position, tolerance for risk, goals, etc.  

As more people placed more properties in STR inventory, and as more municipalities taxed and regulated the industry, the profitability of the overall industry has reverted to a much more aligned (lower) risk adjusted return.  

Welcome to BP.My biggest piece of advice is to understand risk premiums in real estate.