Implications of buying more investment rental houses?

[Jack B.]

I'm looking at the issues and risks for buying more rentals as investment properties:

Cons:

-Difficult to get your money out without capital gains. Either forced to keep 1031 exchanging or cash out refinance. Could move into a rental and have the gains prorated after a 1031 exchange at some point, but a lot of hassle...

-More natural disaster risk exposure, as I live in earthquake country.

-What if the market drops and rents drop? Leverage accelerates losses and then you're stuck with a property and tenants until the next boom.

-Investment property loans are recourse loans. I'm risking it all.

That said, I hate giving up the appreciation I expect to continue (with a minor slow down 2018/2019) by not buying more. Having sold the golden goose, I need to replace it with something. Stock index funds are one option but a little worried about that being at it's peak if not near it's peak. Real estate is easier to predict as supply is still low and demand is high.