For it to work, we need to see new permits suppress to lows and remain at those lows as more and more of the population funnels into multi-family residences. 

I guess what I was fishing for in my initial post was this:  Is there any investor or investor type out there that would an appetite for longer-term strategies like what I'm talking about?  

@Jeffery Waicak  In my town, you can't have more than 5 unrelated people living in the same house under the normal rental property rules.  6 or more with with a full time staff member falls into another category and might have some requirements you didn't think of, like a fire suppression system. 

hia risk appetite is very rich. the only persons I see do those is the ones that don't have much to lose.

The investor's appetite for risk will determine which route they choose.

There seems to be very little appetite for private loans in second position. 

You have to figure out what your risk appetite is. 

@Andrew Besecker  If Fortune Builders is anything like all the other real estate Guru presentations,  they start you out with a free seminar, which wets your appetite for more info.  

Preferences, experience, energy level, appetite for risk etc.Investing in one specific market is what many people do, and it works great.

I think it all depends on the appetite of the secondary market.