I am part owner at CT Property Management LLC and what I can tell you is that some months we are simply an "insurance policy" for our investors (meaning barely any issues to take care of, but are there to take care of whatever comes up) while other months we are worth our weight in gold (things break, tenants need things, some sort of maintenance needs to be scheduled / etc.). 

well from my cheap seats.. the only correction I see is if interest rates go to high too quick.. or regional IE jobs leave.other than that there is not going to be a mortgage melt down so in mind view no massive pending correction or bubbleand to have a bubble bursting type scenario ( according to Bruce Norris and I agree) the market needs about 40% of MLS or open market properties to be OREO or bank owned or short sales.. and we are just not there or even close to there.so many props have been bought for cash.. you have guys like @Steve Vaughan shedding debt he is not the only one..

For those not in the business, the beams in the concrete footing adds rigidity to the slab, allowing it to support the weight of the house. 

Those guys are worth their weight in gold.

If "owner financing" is your version of "Starbucks" in my example and making you tilt your neighborhood assessment, rehab assessment, give that overaggressive Zestimate a little too much weight, etc. you'd better find a way to level things out.  

If I were you, I'd really set 2-3 sit downs with investors in LA who've done this exact type of project, weight the pros and cons and then make a calculated decision on how to proceed. 

Is it because so much extra liability (weight rooms, pools, etc) as well as the additional cost (much more landscaping, pool cleaning, general area upkeep)?

(is the area viable as a MTR, can a shed be rented out for additional storage, etc)In general you want it to cashflow as an LTR but asking as there may be other items that should be included, removed or changed that can help you make a more concrete decision. 

Inspections are worth their weight in gold.

I don't put as much weight on the Cap Rate.