Lakewood is a great place to be, and I hope it does remain desirable!  

There are areas where the median price home is more desireable than other areas and rent isn't a lot less.

Also, I'd guess some residents, especially women, would desire a deadbolt lock.

For insurance, yes, having umbrella liability would be desirable if your asset can support the additional OPEX (operating expense) without significantly impacting the financial returns you and/or your investors desire. 

But your desire to do a 1031 really doesn't impact the situation negatively. 

Given it would be 30-35 mins to downtown in off-peak hours, is it still desirable rental friendly area?

However, began to notice that is a split on whether open or closed is more desired. 

The LEAST desirable of apartments.

For that low of a price point, you need to start by getting a great deal, then put in the least amount of work to make it desirable.

Based on the responses I am getting, it is safe to say I am now leaning more towards a house outside of an HOA community in a desirable vacation area for STR purposes.Most of my funding to start will more than likely be lender financed.