STR seems to have better tax benefits (in the right market) but is it worth it at a distance ???

All indications here are of a pretty healthy market. 

I have been reading the online resources about getting started, searching the market, and even doing tours, but I am hesitant to jump in and buy a house as I have quite a large amount of student debt.

I'd recommend looking at costs. your build cost is going to be well over other homes because of the fixed costs like slab, Hvac, roof, etc. check the market drivers and weight the benefits of short term versus long term. long term is no furniture and help pays mortgage but at this size it doesn't really cover everything. we didn't find a lot of economies of scale in single family detached. can you build more than one unit?

Explore off-market deals where competition might be less intense.Don’t get discouraged—success in these markets often comes from building strong connections and thinking creatively about deal sourcing!

The 2 older adults would be the market.  

I am slowly going crazy with how expensive Massachusetts is and I am leaning towards looking at cheaper foreclosure properties.I understand there is some risk to this but I am beginning to think this is the only option I will have because of how fast the market is growing.Thank you for any insight you may have!

When you charge under market rent, the IRS deems that you do not have a profit motive and, therefore, disallows all rental expenses. 

Note at “standard” MLS market rent to price ratio, the property tax alone is ~20%.

I would love a ideas on what you think might be best to do in the current market and may even be interested in partnering with someone if the numbers work for both parties.