So I think the operative wird is balance.Note - Most of my career in Construction was spent working for exremely wealthy people that you speak of. ($12 mm dollar houses and all that....)

Let them build through hard work like teaming with reputable operator who may take a cut but own the project etc.Neal Bawa and associated companies are another bunch or lier’s who project rosy picture to sign up people but fial to deliver.Those two have made my experience with real estate very companies very negative.

I operate out in Southern California.

TLDR: I do not think Kiavi operates with good business practices.

You then take the cash-out and buy 1-3 more properties and get them operational.

Long-term leases are less operationally complex and face fewer regulatory risks - more stable and scalable option.

They usually sell for a really attractive price because investment property financing is (obviously) difficult, somewhat limiting the buyer pool to owner-operator small business owners (who in turn are typically great clients, as well).  

As for tenant demand, choosing properties in core locations is more stable.I find it easier to add value to a mediocre but prime location deal than to strike a good deal on a substandard property. 

Not an expert here but my Brother is a heavy equipment operator in Northern CA and did a lot of the fire clean up when those fires happened and he mentioned contractor might need hazard waste removal license..

If your leasing application process is thorough and well thought out, and if your lease agreement has been well drafted by your local attorney and if it includes clauses that permit you/your property manager enough latitude to maneuver and anticipate undesirable tenant behaviors, both actions and inactions, and you have operational processes which align with enforcement of your lease, then you've done all you can do to reduce this inherent risk of an undesirable tenant.