It would depend on your income, location and price of the home. 

My ideal location is in the middle so I'm away from severe flood risk, but still 15-20 mins tops to downtown or the beach.  

It could, but you could screen this location with PriceLabs.co as they use both airbnb and hotel rates to create revenue forecasts.

A mass shooting occurred tonight on the street next to the street where the property is located, leaving nine people shot and one dead.

The major pieces of information you are missing include NOI which includes deducting all of your operating expenses from your gross rents sans debt service, market dynamics (what are vacancy rates and asking rents like in the market the building is located in?)

Same with fill dirt - they can't deliver mud to locations, and we can't compact it nor test it. 

Can you share what city in which this property is located?

Check with some of the people that commented here about the specific location.  

As for the 2% rule, most of the properties that meet those criteria are in war zone locations.

All of these spots are awesome locations to buy and set up as an STR (short term rental) use VRBO/AirBNB to triple your monthly NOI.If you need ay advice or want to talk REI or which locations are best feel free to reach out!