You can get diversification and 7-8% preferred returns with 15-20% total returns.

Congrats on getting going...it's the right decision...it's really about diversification for an individual in your position...using a real estate to balance out your investment portfolio is an excellent idea.

I was reminded of the power of diversification both this year and last with my one remaining Four-plex.That red ink you see is the cost of tenant eviction.

You can spread your investment risk buy better homes, more homes, in a less expensive market (diversification). 

But it also gives you a free and clear replacement that you can then refi at will after the 1031 is complete and use the refi proceeds for additional down payments.All in all a great strategy we would call a diversification exchange. 

The diversification strategy of 1031ing from one to several replacements is perfectly fine. 

Lack of diversification shouldn't be a concern in a large enough market like Phoenix.

Diversification is overrated!

One of the goals of this rental property was to improve my diversification in two areas: 1) Real estate. 2) Long term low fixed interest debt.

With this in mind, I'm mainly looking at these two avenues (Real estate and crypto) as a means of diversification. and cashflow.