Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

That is not true.i also do not associate crime rate with cost of living and find it interesting that you do.  

Everything you said is exactly why-- debt levels, market demand, associated costs(taxes & insurance).

Now if your thinking location jumps out as a big factor to all this, you hit the nail on the head, location location LOCATION. 

For now, staying local allows me to leverage my property management experience—most of which came from working directly for family and close business associates who were property managers, contractors, and business owners.

@Ashish Acharya: You hit the nail on its head !!

. - Mobile homes are permitted I've verified with the recorded restrictions and by calling the Property Owners Association. - Current owners have surveys, this is a new subdivision.- Public sewer available.- Current owners purchased many lots and they haven't developed them.

If we bite off people’s heads when they admit disaster, it suppresses legitimate issues with these techniques.Just for context there is a lot of history with the OP and some of us on here going back years (like the thread I linked to above from about a year ago and several others if you use the search function with his name) with him minimizing the risks of how he was structuring these transactions and some of us being cautionary, warning him that exactly what happened here could happen, which made him defensive and dismissive. 

Just a heads up, your rate will spike going from 75% to 80% and you'll need at LEAST a 1:1 ratio.

Just a heads up LTR folks are pretty brutal on furniture.