If you plan to visit the property twice a year that's two round trip plane tickets, two car rentals, two hotel stays, etc. you could easily burn through that $2,500 *extra* profit.  

This way if you suddenly get stuck with some deals in a downturn you aren't completely burned.

We were concerned about the commercial zoning too, but it turned out fine: the bank's appraisal confirmed that if the property burned to the ground I would have 1 year to rebuild before it lost it's grandfathering.

It depends on what your current regeneration of capital is monthly and what your burn rate number is.For example if you make 600,000 a year and use your 250,000 to put down on some investment properties then with your job or business income you can regenerate that 250,000 in a shorter amount of time to invest again.Your burn rate is what you need minimum to pay the bills each month and be comfortable.

If one of your 20 houses burns down you still have 19 left. 

Then, I can under our lease and arkansas law consider it abandoned and burn their crap in the back yard if I want to.Bottom line it's legal here AND it is in my lease.A.C.A. § 18-16-108 (2017)18-16-108.

Basically he turns and burns his money on short term loans because it is more profitable for him and I would need it longer than he likes.  

Don't let it burn you out though...it's a lot of work.

We have decided to take the bet that the burn won't last and we have sold off some of our inventory in areas like that and quite a lot of our landlord clients have also been selling off the past two years.

Start with a polite convo with this unwanted tenant explaining to him that the people that leased to him did so illegally and he doesn't have a valid lease and that he has to be out by the end of the month.