@Robert Burns - is your primary goal to invest for cash flow or appreciation?

I talk to our local Section 8 office frequently as a property manager and in the begin they made it VERY CLEAR that the minimums are to protect the landlord AND the tenant.Most likely, the tenants are not going to have excess cash flow or savings to cover any of the damage to your "upgrades". 

I would also only want to live upstairs for the noise considerations.

Cash flow:  $960.        

I look for propertys and then go to dealcheck.io run the numbers all are negative cash flow by alot of money.

If you live in one unit and rent out the other, you can break even or even have positive cash flow.

An important consideration is the max LTV she's offering, points, general rates and financing periods.

Are coastal areas still good investments, and what are some ways to help mitigate these cash flow risks that are mostly out of our control (in my opinion)?

Coming from an experienced real estate agent we will take this into consideration when we need to edit out referral program. 

@Jeffery Cooper There can be many reasons to sell a condo so I'm going to assume you're asking when you sell a condo you have equity and may even be cash flowing.