Another option would be to go with a DST - the DST will save you money in the long term and will help with minimizing liability if you decide to scale with additional properties (each asset could go into its own cell to isolate from other properties and any associated liability).

Diversifying locations may be a safer play, but I would rather have variety to isolate any potential losses due to market conditions. 

While you may be able to convince yourself that others would lend to you (because you, in your own head, think you're a good guy and this is a good investment), all the lenders out there won't just evaluate you in isolation, it'll be compared to EVERY other investor out there.

Basically when I show up Monday morning and see there was damage done over the weekend, I go back to the video and isolate the footage.

I project messy returns for all but a select few particularly well-run funds in isolated geographies.

You could easily isolate your stocks into an offshore entity, and put US based assets into other vehicles.

Keep in mind, the homes here are really not that special, most are quite cookie-cutter, we have no moutain views or isolated cabins or roof top penthouses.

You might not get that same feeling of isolation that you might get north of the highway because even with the acreage, it is more populated but because you're on acreage, you still get the separation.I'd love to hear your thoughts!

The problem isn't isolated to the KC market. 

We are currently looking at real estate in three areas with our understanding of pros and cons: St Pete Beach Pass-A-Grille (pros: popular and high-end; cons: expensive and no short-term rental allowed); Tierra Verde (pros: unincorporated Pinellas, short term should be allowed; cons: isolated); St Pete Shore Acres/Venetian Isles (pros: proximity to downtown St Pete; cons: short-term rental not allowed).