It may be easy to rectify, maybe not, depends on your jurisdiction, the issues involved and the City's stance. 

I have some experience here, and my answer will be it depends. 

Depending on how long it takes you to save up the amount, you might want to also allow for inflation on that amount for your continued savings.[2]   Read Rich Dad poor dad.[3]   Think about getting a second job - possibly a temporary job - save a 100% of the money.Just my 2 cents.

It's worth a conversation.IF you determine that selling is the way to go, $1M could buy you a comparable property in Scottsdale, depending on where in Scottsdale you'd like to be, and how much land you want on your lot. 

How do you approach educating people on the realities of the business? 

They're busy, they're stressed, they're under pressure. 

Depending on the state, up to 80% LTV is possible.

Over the past 15+ years in this business, i have seen the good, the bad, and the ugly. 

I think it depends a lot on area and price point with $7k monthly rents I rarely spent more then $3-4k a year on cap/ex/maint.

@Michael Quarles I can honestly say that I've never gotten any solid business from postcards.