I just wanted to add that if your spouse qualified as a real estate professional, then you potentially could take the write off :) Its worth something exploring! 

We hear frequently from former members asking if we'll be re-opening and those potential guests lamenting the fact they haven't been able to visit us.We've a couple of younger former associates and a couple of new ones who wish to join us in managing, maintaining, marketing and hosting at the venue. 

At the end of the day it's a straight math calculation, and making an informed bet, but there are also a TON of nuanced reasons that finding a deal is difficult. 

@James RobertSo basically, its just betting whether the property will appreciate more or less than what you can do/invest with the cash proceeds?

I know a couple of flippers doing well in the Bay Area but wouldn't flip anywhere - attempted it in Indiana but too risky with the potential return of $20,000 to $50,000 at best so got out of those deals. 

Consider the potential equity loss and cost to originate another loan versus your REI goals. 

Networking with some local investors/contractors in the area who may have experience or knowledge in this area might be the best bet. 

And naturally I want to focus on areas that provide the highest profit potential. 

You're speaking my language ; ) We've been buying and renovating properties that have ADU potential for quite a few years now and about a year and a half ago converted one of those ADUs to an MTR and it is working out great.

However, that doesn't mean there aren't good investment opportunities available.Richmond has a diverse real estate market with several neighborhoods offering potential, though it might require looking into properties with different strategies in mind.