I don't have an answer to this question, but here are a few ideas that come to mind:1) How volatile is your market?

(was an ambitious college sophomore studying finance in '09 when all hell broke loose) and am wary of trapped capital, I recognize the merits of having exposure to a less volatile asset class.

That was part of the reason Las Vegas had been the #1 market in the nation for growth during the boom and the #1 reason for leading the nation in falling prices.Now that we have tighter lending guidelines, more owner occupied loans and sales, we should see a more stable ownership use and when the next decline comes it will bless volatile and not as steep as the last one.  

Far to much volatility; the risk adjusted returns just aren't worth it.

The problem with Phoenix is that there are virtually no natural boundaries for growth, so it can be very volatile particularly on the outskirts.   

Many of the condo associations have rental restrictions.I stay away from condos in general for a variety of reasons.Cash flow volatility, rehab/rental restrictions, special assessments, etc.

And people are actually using it - for things like international remittances (though you need to liquidate it pretty quick given the volatility). 

I view them as a business that I want to keep in business, I would not get their rental rate from a normal tenant but I don’t really want to share the volatility of the pricing until I can evaluate how capable of a host they are.

A lot of factors could change and without diversifying the economy and wage growth that will make the swing more volatile.  

Also, fine dining kitchens are way too volatile for me ;-)I've been reading a lot of forum posts and definitely plan to seek the advice of a real estate tax advisor but maybe with all the experience floating around there, y'all could give me some food for thought in the meantime.