Then have an attorney assist in drafting the needed documents & agreements.My personal preference has been to have one person hold title & the other hold a recorded option or lien position depending on their roles & needs. 

That may be a more plausible option, just to have an umbrella policy for now.

If you're a true cap rate focused investor, I don't think either of those areas are going to present appealing options.

As long as the zoning for STR is good, you should be good and with a 2/1, you can go more crazy on the beach theme and furnishings which is the only way to be successful in a market where there are a lot of other options.

You may try engaging a broker who can connect you with multiple options, rather than just checking with one lender. 

To get started in real estate investing, it's important to keep learning about market trends, financing options, property management techniques, and laws that apply.

Tons of rating factors that impact the price from one property to another.I say this without even considering coverage, service, and what you might want as there are usually choices to be made.Your best bet is to work with an independent agent that can provide advice along with multiple options for every scenario so that you can find the best value in each situation.

What are your thoughts on investing in a more affordable options like condos or townhomes in the area?

While this platform primarily focuses on the USA, you're absolutely welcome here from the UK. 

The market here is obviously tough (and we'd like to invest here or nearby for several reasons), but we have heard about second home loans that have more favorable down payment and interest options which could increase our buying power and allow us to cast a wider net during our property search.Understably this type of product would have to pass the sniff test.