What makes it more difficult is that most of the 2-3 units that have been sold in the area have the potential of being converted into single family homes that can sell at about 1million, or can be duplexed down or up to attract a buyer looking for more luxurious units.  

From this you can see that debt free properties of any significant value are probably earning no real return since the value of your equity is eating all the income.This is a ultra conservative approach to real estate investing that in reality earns very low ROI.  

I am wondering what experienced investors/builders might think about the following investment scenarios (sort of passive income): Buy the right piece of land and build a five/six row of townhouses and rent them out (@1,500 sf/unit, maybe rent them @$1/sf or a bit more) Buy a beachfront property overseas and build a small resort (six luxury villas/bungalows) each with private plunge pool and stunning views (charge $350/$400/night)-option 1 is less risky than option 2 but rewards are considerably lower for option 1.

That's a tricky one, @Darren Greenwalt - there's lots of competition in the 4-5BR size, so you're going to be trying to separate yourself from them with your luxury amenities.  

Is anyone doing a JV with others to go in on some of the big luxury properties to use as STR?? 

I have always been self employed so I don't have the luxury of company retirement benefits and so on!

Near parks, restaurants, lakes, public beach, farmers market, luxury movie theatre, and shopping.

Meh I dunno I just look at all of the apartment complexes in East Liberty that are ~50% vacant still, I would think more developers (or rather investors I guess) would be pumping their brakes on dumping more money into what amounts to more luxury rental units.The Esplanade looks neat but is years away - maybe Manchester will finally get the revamp people have been talking about for years because of it.A lot of these projects just seem like long term appreciation bets and I accept that many people live and die in that space... it's just beyond my wallet and risk profileNice list though, thanks for sharing!

You will not have the luxury of putting your business on the back burner.

You've traded extra potential return from forced equity for the luxury of having your time and energy back and having someone else shoulder the rehab risks.For some investors who don't work full time or just think DIY stuff is enjoyable, it seems crazy to trade away forced equity return for convenience, which is where a lot of turnkey naysaying comes in.