I was thinking I'd probably be wise to use an LLC to do this in order to avoid personal liability, but other than that what do you think of this idea?

Its much easier to spot deals locally, know the best areas and trends, and avoid property management fees and troubles. 

I have 20% to put down but would rather not if I can avoid it.

@Nigel Rector - Ask him if he wants to avoid a huge capital gains and depreciation recapture tax (while retaining a monthly income) by owner financing it to you

With this structure you can avoid some state-level tax compliance fees as well.

I think once you've read the relevant books and gotten a familiarity with the principles and techniques of investing, be it buy and hold, flipping, or BRRRR, it's time to then avoid analysis paralysis and jump right in, starting with that first deal. 

If yes, what regions of Durhum/Raleigh to avoid?

Regardless of what state and local laws say, I certainly would honor the request in one way or another to avoid potential liability.

Since you're already living in one you'll complete avoid the 5% - 10% state tax on income if you look in places like your backyard in TX, anywhere in FL or the Smoky Mountains of TN.

Do you have any recommendations on how to supercharge the kind of familiarity that you are referring to, while avoiding doing anything outstandingly stupid?