It is as if they are TRYING (hard) to fail.If 200 people eat poison, and 3 people it the super power giving fruit.And 200 people die, and the 3 people eating the supper power fruit get supper powers like me.

The whole simple saying of don’t put your eggs in one basket rings true.     

Make a smores basket.

If you are eligible it’s another egg to add to the basket.

It is never wise to put all your eggs in one basket.

Like you mentioned, its likely watched by many others and is not the low hanging fruit. 

Rural might be low hanging fruit for regulation avoidance, but the urban areas have a need and I believe a demand - we just need creative minds to work through the regulation fog until we make it to the other side :) It sounds like you have some great background and perspective and I very much look forward to learning more from you!

You're chasing upside without concern for mitigating your downside.A single family home in an upscale and strong demand neighborhood like Beverly Hills is like a blue chip stock in your retirement portfolio.I understand that it does not appreciate as rapidly as a growth stock and I also understand it does not yield dividends equal to a more speculative growth investment, but, when the markets turn, which they always do, It's more likely to retain it's value and provide you a hedge against the risk of more speculative investments.I'm suggesting that by abandoning a solid and less risky investment in order to put all your eggs in a more speculative basket you're giving yourself a better chance of a larger income stream and perhaps better short term appreciation, but you are also risking all of your equity in a more speculative market by buying in less solid markets.To me a smarter, safer move would be to retain a solid blue chip asset that pays for itself and perhaps also pays for the additional equity you could borrow against the asset (new loan or credit line), and then re-invest that borrowed equity in more speculative investments if you wish to generate additional cashflow.If you've outspent yourself and need to generate cashflow quickly for another reason we haven't discussed here I understand that sometimes decisions must be made on a shorter time horizon.  

The note was low hanging fruit in the seller's portfolio that I probably could have paid less for.2) Go into the deal knowing that keeping it as a rental had to be one of my main goals.

If you can't deliver, say you move or retire, they have put all their eggs in your lower paying basket and have no customer base to fall back on.