- Are there areas that would work well as a mid-term or short-term rental in addition to long-term?

The S.O.T.A program works well, and is a good option to get a tough to rent vacancy filled if you invest in a low income area.The process of getting the deal done with them is pretty simple but pack your patience though if you get a bad case worker, you'll need it.

Obviously mounted up high in a readily visible spot "trail cams" work just as well (as a possible visual deterrent), very cheap online. 

We are in Pascagoula, about 30ish minutes east of Biloxi, so we have been looking around in that area as well.   

Relationships can be important as well. 

Just typing that makes me amazed I turned out as well as I have), I believe I am qualified to speak on the matter.

I don't doubt that it is true for some people, but I think sometimes people just repeat it because that's what's in their head, without actually tracking it.I think part of it is market dependent as well. 

Louisiana is changing their tax sale laws now as well, killing my tax sale business that has done very very well over the last 15 years.

Once you clear the 2-yr mark of living there yourselves, you can likely use the full $500k.Disclaimer: I said likely, because there could be a mountain of complications, as well as some different opinions from my peers.

I also do property management for work, so I can definitely help you out as well if you are needing it fully leased.