Parts of Avondale, Bond Hill, Roselawn, Winton, Evanston are all areas I would avoid.

Banks are much, much more sensitive to the changes in interest rates where Mortgage Companies "securitize" their loans by basically placing those loans in "traunches" that act more like a long-term bond.

When there's savings and bonds accounts offering 5%, the likely anyone is advertising they have private or hard morning at 5% is most likely a scam.

If you don't want to go through the lengthy FHA process, check them out and see if you like what they are talking about.

At the state level, they utilize tax money to create affordable housing grants in the form of preferred lending, grants, guarantees, and tax credits which make the process of applying so elusive only the biggest players can take advantage thus providing great opportunities for the rich to become even richer.At the local level zoning laws, impact fees, bonding, and preconstruction paperwork make the building extremely costly.

Really, really appreciate any insight, and I apologize for the lengthy post.

Or they could also buy $500M worth of short term government bonds. 

Wouldn't i be at risk for a default by the buyer with a possible lengthy and expensive foreclosure process if they can't pay.  

As such I would invest that profit into either more rentals, or index funds, REIT's, bonds, and other businesses.

My recommendation is that you get a snow service that is bonded and reimburse your tenant for bags of salt as needed.