@Mark Allen - I would welcome the opportunity to review your plan/pitch deck.

Surrounding yourself with experienced peers will open doors to learning opportunities and partnerships.Wishing you the best as you get started!

Yes, getting sued is a risk factor and I've been involved with frivolous lawsuits which are not fun, but in my opinion you'd be in a much better spot owning a property in your personal name that let's you keep an extra 10-20% of the purchase price in your pocket as emergency funds, as opposed to buying the loan under an LLC that requires every last penny you might have to make the higher down payment, then you have to operate on a shoestring.

I am a first-time investor and am looking for a location (hopefully) where I can get decent appreciation while not having the risk of crazy negative cash flow (like one sees when doing the math on opportunities in Seattle, for example).

Quote from @Bradley Buxton: @Matt J.SD has some great weather and opportunity. 

Higher Fees and Costs: Cross collateral loans may come with additional fees, such as appraisal costs for each property involved, which can increase the overall cost of borrowing.In conclusion, while cross collateral loans can provide valuable opportunities for accessing larger amounts of financing and potential cost savings, they also come with considerable risks and complexities that borrowers must carefully consider.

Investing outside of real estate: What other investment opportunities (stocks, REITs, or businesses) might make more sense in such a market?

I'd like to consider some local investment opportunities.   

Ask a home inspector for their mold guy if you don't have one already.If these are otherwise high maintenance tenants: offer them the opportunity to break the lease and move out with no penalty (besides damages, of course).

I have recently been applying to jobs that teach and train real estate agents to wholesale, looks like it could a good opportunity on account that they have the capital.