After analyzing over 20 rental units in my area I came to the conclusion it wasn’t reasonable.

You make conclusions :)

So I think you'll reach a similar conclusion for any town in our area, and will need to base your decisions on what you think the next year or two will look like (after many STR's are likely sold and converted to owner-occupant or LTR housing...and after high federal borrowing rates stop cramping people regarding discretionary spending), as well as what you forecast for appreciation.

The facts, contractual agreements, and applicable legislation will all influence the conclusion.

Im unsure of how many HOAs opt out in Indian Wells, so I can't make a conclusion on that city yet.

The court also considered that the income the Floods derived from other sources was modest compared with the sale of the lots.The court concluded that the “preponderance of credible evidence supports a conclusion that the Floods’ real-estate transactions were conducted in the ordinary course of a trade or business and not for investment purposes

My conclusion is that of the whole list, I like maybe about 3 of them.

It's hard to come to any other conclusion when you account for all the different ways in which it is accretive to personal wealth, such as appreciation, income, leverage (when used), and tax benefits.

It's funny how @Shannon Jones doesn't mention utilizing an Architect but you've immediately jumped to this conclusion @Henry T..

I would need to know exact location in order to give a more conclusive opinion.