After nearly 2,000 probate deals I have pretty high tolerance for risk.If you want to get in the game, you'll need to ante-up and occasionally have some serious money at risk. 

This is where a holding company can help clearly establish a bright line between business, semi-business, and personal financial activity.Management and Holding LLC's are not used much unless you have personal wealth exceeding a million or more - when you choose to start using one is based on your own risk tolerance.  

My risk tolerance is pretty high, so I'm okay with being the only one in the area to do this.

At the end of the day, it's a decision about your personal debt tolerance.

@Troy Benvenuto I would say it would depend on your risk tolerance and what else you would do with that money. 

Diversification is for investors who don't really know what they are doing and need diversification for safety.If I find an area where I continually dominate and rake in massive returns, I am going to throw everything I have at that and not buy in other areas simply to "diversify"Of course it all comes down to persoanl preference and each individuals tolerance of risk coupled with their own comfort zones.

While your realtor's input is valuable, the ultimate decision should be based on what aligns with your investment goals and risk tolerance.

And how long are the poor locals (the overall majority) going to tolerate to lend their country to be some sort of playground for middle-class foreigners?

Analyze your risk tolerance and see what direction that points you in.  

Everyone has different tolerance for risk.