Thinking about Pittsburgh PA to begin with because it is my back yard.

I look at it through the lens of: 1) If I contribute to a pre-tax account like a pre-tax 401k, Traditional IRA, SEP IRA, I get a tax deduction, but now I'm in a partnership with the IRS, but I don't know what I will have to pay them later on in life when I start pulling money out (that is because when you distribute you pay taxes based on your effective tax rate at that time, which can be unknown). 2) With Roth accounts, (Roth IRA/Solo 401k(k) with Roth component), I can get the taxes out of the way on the seed, so I don't have to pay on the crop. 

If you try to get in with some upside down project with thin margins you won't be able to do it.The midwest from Pittsburgh out through Ohio and into Indiana, you have markets in that belt that offer beginners with little capital and no experience a chance to play.That's fine and dandy but setting up a network full of Agents, Wholesalers, and GCs that aren't gonna over sell you, talk you into a bad project, or plain rip you off is the hard part.

Does it make sense to diversify and make 2+ purchases with this initial seed?

I can't speak much about the Pittsburgh area, but I own multiple properties here in Columbus.

We're focused mainly in Pittsburgh but even then there's still ton's of investment opportunities here from Section 8, Student Housing, LTR's, etc...If you're interested, I'd be more than happy to get you in touch with some of our investor specialists to help you start your portfolio! 

If I am understanding, you don’t (or can’t) refinance these properties for seed money for your next investments. 

If they're looking for $10,000 seed money and you have $10,000,000 sitting around - plus the due diligence checks out (legitimate opportunity) - that's relatively low risk for a good upshot.If they're looking for $50,000 seed money and you have $75,000 liquid, absolutely not.Personal financial position, coupled with due diligence, are important.

This scenario gets to be more of an issue when you have an unethical wholesaler on the other end.In every industry there are bad seeds.

Partial Sod or Seed: If sod feels too expensive, consider seeding instead.