Assessments could be an issue so make sure that your HOA is healthy, however, it is still a risk. 

If I was feeling more ambitious, it allowed me to stop working and focus 100% of my time on writing a book, or maybe getting healthy if I became too burnt out from the usual non-stop adrenaline and cortisol-fueled American corporate work schedule.

That's the beauty of combining.But you're right it does still leave a healthy reinvestment target needed to defer only $100K of cap gain and $70K of depreciation recap. 

That being said, it is very true that the cash flow is traditionally poor in San Diego and negative rents for a sailor in San Diego cannot be financially healthy.

But more time consuming.

For high wage workers — the ones buying most of the real estate — the employment numbers look very healthy.

Contractors, property managers, brokers, lenders, wholesalers, and a healthy dose of like minded investors that can hold me accountable and for which I can do the same. 

It's very time consumming.

It's not hard it's just very time consuming.

I'd rather have healthy reserves than less debt, the debt is fixed and I know what those costs will be.