Landlords, Is it better to buy apts in 1 area or diversify?

[John S.]

Hi guys, I'm looking to expand my rental portfolio (currently have 1 rental) and am wondering, is it better to diversify across regions in the US, or concentrate on 1 area?

I have a rental in Arlington, VA (next to Washington, DC). I can see the benefits of concentrating because it'll make it easier to manage if I stay in DC. Alternatively, if DC's economy tanked, I may be in a bad position - that's why I was thinking of diversifying rental properties across the country (e.g. Austin or LA). What do you think makes the most sense?