Hope your next steps are much more smooth and you can take those lessons and turn them in to gold. 

. - Boutique hotels are on fire.

Those that cannot weather the storm get wiped out.Having cashflow positive properties provides a margin of safety you just do not have with negative cashflow.Why are you focused on buying in your backyard? 

The flyer you linked is about food safety rules by the Department of Agriculture and states they only allow true service animals in food establishments.

A kitchen fire in the back unit got a little out of control and burned up to the roof.

For those who have invested in both, what were your biggest lessons learned?

However, in emergencies or cases involving health and safety, we would attempt to contact the owner first and, if unsuccessful, proceed with the repair as outlined in the contract.Regarding the hot water heater, do you know if it genuinely needed to be replaced?

Instant equity creates a margin of safety.

With the fires in CA, you can expect materials and contractors to become even more expensive. 

@Chris Seveney @Marcos A Miranda - you guys are playing with fire - https://www.biggerpockets.com/search?