I plan on keeping the property for 20 years and hope that the appreciation and eventually cash flow (after raising rents) will make this a better investment then putting money into the stock market (and allow for diversification).I know that this is a long winded answer, but any suggestions based on this?

Over the next few years I want to accumulate a few more buy-and-holds in the area, and eventually outside my area for geographical diversification.  

We raise money into this fund for folks that want exposure to a national footprint and wish to invest for a period of time for tax advantages and both geographic and temporal diversification.

I like the idea of diversification.

After spending 35 years in the brokerage industry ( stocks and bonds)  I am attempting to add rental property to my portfolio for diversification purposes.

I've run the numbers for both and given my capital ($30k), it is about the same out of pocket to do either, and both scenarios will net me roughly the same monthly cash flow ($300/mo).Purchase another SFRPros - diversification, another property in my portfolio, another property that someone else is paying down the debt, new property would provide add'l depreciation,Cons - more leverage, another property to maintain, rent, mortgage, take on more debt for same monthly cash flowImprove existing SFRPros - improving an existing asset, no addition debt for the same monthly cash flow, less to manage (property, tenant, etc...) long term, increase equityCons - increase my exposure/cash in a single property, less leverage, more to damage by tenant, more equity tied up in one propertyI recognize the pros/cons are not an exhaustive list but just some of the things I'm trying to think through.Are there other "big rocks" I'm missing?

I understand importance of diversification in stock investments, is it important in realestate?

Downsides of multifamily as of yet to be mentioned - four checks each month to follow up on, four HVAC systems to service, four hot water heaters to keep up, etc.As with any other form of investment, some diversification would be ideal.At this point in the game, you could go either way and would have success.I personally would opt to buy a few single family rentals subject-to.

They allow for some diversification and use of far greater experience and knowledge.

That is why it is important to use this as a diversification strategy and not commit your entire IRA fundsYes, if you borrow you will have to pay taxes on that piece but it allows you to buy more with less.