Noise ordinances as well.   

Petersburg for over 30 years, I can attest that the last two big hurricanes caused significant damage, but they were the first in a long time.Condos and townhomes tend to perform well, especially if they're located on the Intracoastal Waterway or within 3-5 miles of the beaches.

If you’re focused on long-term wealth and passive income, holding onto the property could work well.

Have you found that certain property types or markets tend to have more eviction risk regardless of screening?

Anyone can get 4.3% now in a 100% treasury fund (was 5% until recently), virtually risk-free.

Hard money lenders are often more willing to take on higher-risk projects and offer faster closings, but the trade-off can be higher interest rates and shorter terms.

It comes down to your own risk tolerance.

If this is a one-off issue and they generally handle things well, maybe give them a chance to make it right.

The structure is mainly appreciation-based, which minimizes tenant and maintenance risk. 

You won't find a deal where you live for free, but if you can live in a great neighborhood at a reduced cost of living that is a nearly risk free way to get started in real estate.