CapnScurvy is giving you good advice. Steam's a bit shady on this game. That said; I play a Steam copy (of 1.5; I also bought the expansion) with the following mod list:
Generic Mod Enabler - v2.6.0.157
[C:\Steam\steamapps\common\silent hunters wolves of the pacific\MODS]
1_TriggerMaru_Overhaul_2-5
RSRDC_TMO_V502
RSRDC_V5xx_Patch1
1.5_Optical Targeting Correction 031312 for RSRDCv502
1.5_OTC_Realistic Scopes for 16 to 9 RSRDCv502
Improved Ship Physics 2.6_TMO_RSRDC_OTC
OTC_ISP_Crew Mod
Realism Settings
If you do end up going with Steam make sure you allow it to install DirectX 9 even though you already have 11. Steam also has an option to 'Verify Integrity of Game Cache' that will redownload all the files that don't match a clean install. That's what I use instead of reinstalling when I'm changing mod configurations. It's worked great so far. I just have to remember to make sh4.exe large address aware again afterwards.
So, to summarize, if you spring for the U-boats expansion, Steam works with mods. But there are cheaper alternatives that don't have the appearance of dishonesty that Steam has.
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