To be statistically 'safe' from a vacancy, natural disaster or other risk profiles, you need a whole lot more in differing geographical locations.Most people don't really need that safety because they don't often face the risks they fear and if you self-mange you can control your risks in better ways.Is 20 properties the right number for you?

It is geographically situated on a piece of land that is not only coastal, but easily accessible to one of the largest cities in the nation.

You might consider having one agent for each geographic area, for instance: one for the north half of city and one for south.

Your explanation is a little confusing but I think your referring to a Subject To transaction.

The other huge issue is you'll need a heck of a good LOE - letter of explanation to sell the UW (underwriter) on why this is ideal to be  your primary residence using factors the UW deems as variables that make sense for a primary occupant (larger family, location, schools, sob story, etc, etc).

Comps - properties sold within a specific geographic area

@Matt Devincenzo , it seems as if your explanation for the lease option is as if you were the tenant/potential buyer, whereas your explanation for the subject-to is that you are the investor.

@Divina Westerfield Thanks for the explanation!

(I have some builders who are hungry for any tear-downs I can find and wholesale to them in a certain geographical area.)  

I will give a brief explanation of how I structured when I get to my computer in a little bit.