Within the city limits there are essentially no regulations and one can reliably obtain a permit with some due diligence, however as a result the geography is saturated with active vacation rentals. 

I would invest the other half with a diversified mix of cash flowing assets across operator and geography with a focus on assets with good long-term demographic fundamentals, (i.e.

Reno / Tahoe is not building out much because of the geography creating a supply issue over the next 2-5 years, there is strong tech, manufacturing (Tesla), and logistical job growth.

I am extremely appreciative.You ask me what my goals are in terms of instruments and geography.

My only plan when I started this was to earn a better return than anywhere else by using my comparative advantages (high knowledge of construction, DIY abilities, intimate knowledge of my geography, location in a cheap but growing area) to affect my return in a way that was impossible in other arenas.

It's very expensive, has horrible traffic on restrictive roads due to the geography, but is very beautiful, not much snow, milder temperature swings, great hiking and outdoor activities such as 4x4 or hot air balloon tours - very touristy.  

Olu - Assuming the geography and style/type of building fits your criteria (others have made comments that you should consider) the other part of this discussion on whether this is a "good deal" is the ability to increase the NOI of the property over time.

Personally, I may do something before then with a similar capital gains objective but with a longer hold and only in a few very narrow geographies.  

There are pros and cons to areas in any geography: schools, access to transportation / highways / freeways, location of the home in relation to work and a whole lot more. 

You can evaluate options in different geographies with different syndicators.