Baxter grew up in Plymouth, Massachusetts. The niece of Max ("Jethro Bodine") Baer Jr.

immigrated to Hollywood at age 17 to live in Baer's mansion and her uncle promptly set up her up with James Woods, who she dated for several months. Despite being in California, Amy Lynn actually began her acting career in Florida where she picked up roles in T&A beach comedies like Summer's Games (1987), Summer Job (1989) and Lauderdale (1989) and in the Italian production Karate Warrior 2 (1988); all of which were filmed in and around Daytona Beach and Miami. Afterward, Baxter appeared in a nude pictorial in Penthouse magazine, becoming their "Pet of the Month" for June 1990.