Apartment buildings are attractive for the cashflow and ROI, but 3bed 2ba also seem potentially profitable.Anywho I'm reading the Ultimate Beginners Guide on BP.  

The other offer doesn't have terms as attractive.  

Short and medium term impact on the value of a flooded home is sustantial, and my research would indicate as much as 30% reduction in value from pre flood value.

We look for things like motivation and willingness to learn.One way Experienced Investors judge to work with Novice Investors is to see if the Novice Investors prove their motivation.Novice Investors Posting that you would love to meet Experienced Investors and hoping that the OP of this thread will pick up the reins and coordinate a group meeting with a good mix of both Experienced and Novice Investors will only demonstrate to Experienced Investors that they will probably not want to work with that particular Novice Investor(s).Although I'm breaking a rule by pointing out to Novice Investors a simple fix to prove their motivation, I just have to say it.When you don't have much to bring to the table AND you wish to network with Investors that bring a lot to the Table, then you have to use what is in your power to attract those that can benefit you.

Our potential plan is to co-finance the construction of an ADU for short term rentals as 50/50 partners and then split the profits interest.

I'd look at properties that would work well for "entire space" listings - close to sites and attractions, safe area, bars/restaurants nearby, etc.I expect once our AirBNB listing becomes more seasoned, we'll be clearing our mortgage by well over $1,000/mth - providing more cash to fund future real estate deals.

But in general a 24' clear masonry building in good shape for its age and ability to add value through reverting to multi-tenant would be attractive to me and so long as your comfortable with the tenants credit, your return and ability to release it in 6 years if needed then go for it. 

We're worried about the tenants it might attract.

I'm interested in Seaside,California as a short term vacation rental investment.

It can be done by experienced investors with a solid track record that will attract other investors to them.