One thing I will say is the the rental rate you can get in Riverside ranges widely depending on the level of renovation done.

However, they are asking me permission to build a 12-in wide v-ditch drainage on my side of the property for water that flows down the hillside and prevent the wall from eroding.

I understand that investment properties will always have a higher rate but didn't expect the gap to be this wide as the gap between the two have always been 0.5% in the past for me.

Any sense of if this type of loan structure is widely common or specific to your locale?  

That opens the door wide open for constructive receipt and outright fraud. 

Both of these leave you wide open to later selling a property and then using the 1031 to purchase this property. 

This was a small local bank that held it.The other was a nation-wide bank. 

I don't think you need terribly wide diversification, but betting the farm on a single transaction is a bit much.

Figuring out your expenses is more difficult with this type of property, than with multifamily, because there is wide variation regarding which expenses the tenants pay themselves or get charged back for, and also what services you are providing. 

The local party affiliates (who have either been sold on the "Trees" or think they are falling in line with the grander party desires will put these barriers in place locally (and ruin their community in the long run), but this is at odds with the actual desires of the "Sellers" because solving the carefully chosen "Gin-ed up problem" leaves them without any problem to solve (which is their selling point to get national votes).The SJW's are a disparate group.