It's extremely volatile.

Unlike stocks or bonds, real estate investments are not directly tied to the stock market and can provide a hedge against market volatility.

As a property management business model it probably less salable then a conventional property management business; not that it can’t be more profitable short term - just that the earnings are going to be more volatile, or at least perceived that way.  

All that while being a passive investor in a business involving vacation home RE.Is there a better way involving less volatility or more consistent cash flow for easier sleep at night?

Not to mention the volatile market right now on exit pricing.

We're in a market where trillion dollar companies sometimes move 20% in a day and 50% in a week, and there are a dozen "short reports" every day that traders latch onto and trade the short term volatility. 

That said, on the practical level those situations are going to be far and few between and be subject to substantial volatility in results.

You never know when the music will stop, and if you're not able to exit the market quickly, you could lose a lot of your wealth.On the other hand, commercial real estate may offer the best returns with the least amount of volatility.

With the volatile market you should definitely look into this. 

Just due to the volatile nature of my job I am realistic enough to know having a fallback plan is necessary.