And folks that need to do that dont have the capacity to deal with a loan that has been called and a seller that is madder than a wet hornet if you goof up their credit.Then the other major issue glossed over by everyone is there is a minute amount of sellers that will even entertain these transactions and most of the time your paying a premium for the asset.

I'm well diversified in equities, I think the scarcity game of physical real estate then add in the premium which is location will give me a higher yield in the 10-20 year mark and that's my timeline. 

You are comparing 3 cities where you pay one of the highest premiums in the USA to live to 3 of the cheapest cities in the USA.

Those highlight reels rarely show the hiccups, and from what I read in Forbes recently, a lot of seemingly ‘perfect’ deals are just good editing and timing.Before jumping in, I’d think about whether the deal has amoung enough cushion and what your backup plan is if the project drags on.

We diversify, but because we are active investors, limit our diversification to assets we believe we have a competitive advantage and are able to obtain our targeted “premium” return.  

There will always be someone looking to pay the lowest price and others who will pay a premium.

I would lean toward Roseville or Elk Grove, while you will possibly pay a premium investing there, your upside long term is going to be better.

EDIT: Asking because I would've thought the exact opposite. 

I can buy landlord insurance without coverage on roof (wind/named storm peril) but is it worth the premium?

I currently pay a premium price for my turnovers for a local cleaning company that specializes in STRs.