Well, 500K down would likely be on a 2M multi, that isn't small to me. 6 Luxury type units, I don't think so, vacancy would kill your return, maintenance?

A cluster Triplex zoned commercial at $575k and a few luxury oceanview rentals. 

I am on the other side of the mountains from you and in the military as well I have had the luxury to be a little more stagnant than most military career fields.

Luxury apartments or properties worth more than the average person can pay for it tend to go down in value more than a non-luxury market rate property.

VCT is so thin, you could probably lay down some luxury vinyl tile right over the top of it as long as the VCT is cleaned of any dirt, grime or wax and is secured.

All my friends careers were going great and they spent their money on $500,000 homes and luxury import vehicles. 

If you aren't looking for luxury then you can find some good multis in the city (in good areas) that will let you live for free or super cheap. 

Whatever it will build, it will attract luxury builders and the high earners, and then will show up restaurants, boutique, etc, the money will pour in the neighborhood. 

Larger developers are building upscale apartments like crazy here (literally #3 market in the country for these luxury builds) which has saturated the market making tenants less inclined to pay top dollar for older multi family residences.

In the wholesaler situation, they don't have that luxury and simply lose the deal.