In the upstate, the damage is not like what you get with a tornado where buildings are leveled nor is there massive flooding (like we've heard there is in Western NC). 

Like Rick said, if the numbers make sense for you then why not?

You really don't know what you have until you are well into the process.

Doing a deal like this makes sense to myself as an investor if I were to do it with 0% of my own money down and if it was structured and laid out for me.

Your friend will have a difficult time with rentals because he's not screening the applicants or enforcing the lease well enough. 

Yes I have done one cash-out refinance and it worked well.

(My assumption is it may be tough to prove enough material participation if using someone local to manage.)Two things worth noting:1- I'll be discussing with my CPA in-depth soon, but would like to hear other's experiences on this.2 - The main reasons I'm looking to STR's is the tax benefits (Cost-Seg) & appreciation that comes with buying in these areas opposed to the mid-west where I look for long-term rentals..

@Fernando Guzman, You know those properties well. 

In Denmark, these communities combine private living spaces with shared common areas like kitchen etc., fostering a strong sense of community among residents.

To kind of give you a sense of what you are asking, it is like me asking you if Eating Out is a good choice?