HMLs are gone, Banks are gone, LOCs are diminished; etc etc.

Trying to keep as much cash on hand as possible but I understand your point.The challenge: As prices for homes go up, the rental market in certain areas can hit a ceiling (based on avg I come in that area) so you start heading toward diminishing returns. 

As the area continues to develop, and crime + decrepit properties diminish, the rents and resale value will increase exponentially.

Maybe those returns are diminishing as more Airbnb's hit the market, but show me a market where that isn't happening.

Signing contracts with people who you know have diminished mental capacity can be invalidated.

I would think it could be considered diminished services if you cut internet but definitely not a utility.  

In setting rents, the Landlord must consider the future diminishing value of the dollar and raise rents at every opportunity.

The bigger threat on the horizon from that is less about whether your house was a bad investment (inflation will assuredly make it a good investment from a leverage perspective) and more about how miserable you and your tenants will be when you can't buy anything because supply is diminished and inflation is spiraling out of control.

Also, if this were an apartment building, I think the strategy would be better, but the hotel being an operating business, if you take it to foreclosure, chances are that the business (Hotel) will be closed and out of business which diminishes the value of that asset.

Is my curve diminishing fast enough?