Eliminate the use of debt as much as possible, saving cash reserves, diversification of investments, math equations, insurance up to the wazoo for everything we can think of (life, disability, long term care, umbrella liability),and among the many of other things of course you need to keep giving back and educating yourself, which is why we post in these forums.

Turnkey operators provide a niche which is a diversification of risk over a large portfolio which protects profits far better than an individual owner with 1 to 5 rental units. 

Tech, entrepreneurism, and diversification at least!

Diversification decreases risk, whether in real estate or in stocks.  

So, it's either find that multi-family property in Florence, or handle continued portfolio diversification via publically traded REITS, which have done so well for me these past few years.

Another benefit to refinancing the property, and the flip side to the economy of scale, is diversification by owing multiple properties and not consolidating a portfolio into 1 or 2 large buildings.What has been your experience either trading up or refinancing and what have you learned?

As said, you could worry because it is a one-horse-town but you can resolve that by developing your own diversification strategy.

Sell one and buy two or more - a diversification exchange.  

The question becomes about diversification since holding a smaller number of properties in a single location leave you more exposed to the local market, but that's ultimately a question about your risk tolerance and how well you've done your market research.There are a lot of strategies, and fewer of them that work, but either way you cut it there are a lot of ways to make money with buy and hold.

My back of the envelope math is following:$600k upfront purchase (for simplicity sake, assuming no mortgage)Expenses: $6k annual tax +$4k annual maintenance/upkeep +$3k annual utilities + $2k annual insurance for property and liability = $15k annual OPEXIncome: $1.5k per week in summer and $1.5k per month in winter (after deducting PM fee)16 weeks in summer (assuming 80% occupancy rate, allowing me or my extended family to use it when it's not booked) and 3 months in winter (assuming 50% occupancy rate) = $28k total annual incomeGross profit = $13kROI = 2% 2% return will probably make most people run away screaming, but for me, it's not a bad deal.  2% is about the interest rate I can get from a long term CD, but I also get about $10k worth of usage out of the house which is not included in the calculation, nor is the potential appreciation.In other words, for somebody like me whose primary objective is asset diversification, a house is a better choice than gold coins.