Ok so onto my question, should I section the lot and build some units on it  and if so what kind make the most sense here? 

BUT CRASH  not sure about that.. unless tech dries up and leaves of course.. kind of like how steel left Cleveland.. 

I will keep that in mind when investing near a body of water, I'm sure there is some kind of insurance to cover hurricane damage?

A 1031 exchange is not right for everyone, but when comparing the numbers...Option 1: Have a larger asset base to work from and reinvest in income producing properties (via 1031 exchange), orOption 2: selling, paying taxes, and investing in the stock market (which may or may not be paying dividends).An exchange can also be thought of as an interest free loan from the government - you only pay the taxes when you do not reinvest in like-kind real estate.You do make a compassionate argument for your current tenants, and that does not go unnoticed, however as @John Warren pointed out, your return is very small. 

For us, knock on wood, that's all you can do there and as long as your insurance doesn't kick you to the curb, you'll be fine.Biggest common risk I hear about is bad tenants ripping your places up and sucking away your time and equity. 

HOA in theory can remove free rider market failure if well managed, when there are costs and/or needs for management shared by all.HOA kind of philosophically touches on the oft debated (and oft oversimplified) ideological debate between centralization or decentralization of authorityMy thesis would be: I suspect that HOA developments have higher property values in general, however when controlled for development budget on a per home basis, I would wonder if this actually holds up over time.I have heard anecdotal stories of corruption within HOA bodies, and mismanagement. 

What kind of strategies seem to work best for you guys?

I've dealt with the same kind of issues.  

I mean it seems to be the right kind of place because at night you don't see questionable behavior, i.e. prostitutes, drug deals, etc.

I'm evaluating a RealtyShares.com common equity investment offering for Twin River Commons in Binghampton, NY with target return 14%.