I'm starting to turn bullish on the Gatlinburg area again.

There are very few true oceanfront properties in Pismo, and only a small area with flood risk  if during a heavy storm, so I don't think insurance will be a concern.

I'd recommend you hire a local PM to handle these issues if you are out of state and not familiar with the area.  

Pete area?

This won't work for urban areas or non-primary residences, and would have to be single unit, but if you'd consider doing something like a live-in flip you could look at USDA:RD loans and then refi to hold or just sell.

I ran some comps and found that the price is reasonable based on the area, could be slightly lower around 10k or so.

Anything east of the St John’s river to the beaches is generally a more A-B area.

Better areas/better assets are still pulling strong rental rates with quick turnover time between tenants. 

I've heard of similar laws in a couple areas.

For context around our area…population is less than 200 in our immediate area, nearby is 2,000ish, and closest metro area is a little over an hour.