We will pay off a few more loans with smaller balances, even though they are lower interest than what we are getting on new acquisitions.

Sure you could do a money market or put it in an ETF or something, but this is one of the options where the balance "can't" go down or is extremely low risk while making a decent yield.

Even if city looses, they'll probably make things difficult on operators with all kinds of rules and regs like many other cities. 

A few notes from a licensed insurance agent:$500,000 liability coverage on renters insurance is not difficult or expensive to get. 

The actual penalty varies but it's often a step down or if a 5 year prepayment penalty term, it will be 5% of the original or unpaid mortgage balance if refinanced or sold in the first year, then 4% in the second year and then on down (the exact penalty varies which is why I mention both the original and unpaid mortgage balance.

Who would ever invest.. now that they have not paid as agreed of course they are going to find it difficult or impossible to raise new money in the fund you invested in..

In PCB and Destin, though, the balance between property prices and potential rental income is much better.

Thus it is very difficult to cash flow with a rental property, however you can still make a great return with appreciation. 

The environment now with higher interest rates and higher purchase price does make it more difficult but definitely doable. 

FHA has a self-sufficiency rule that makes it difficult unless you put A TON OF MONEY down.