Diversification, transparency and choice. 

This type of exchange provides investors with a way of increasing liquidity and diversification of their real estate investments, while deferring very costly capital gains and depreciation recapture taxes that may result from the sale of properties.

You don’t want the ongoing business to suffer because you are putting more time in real estate, which may or may not work out as expected, because there will be a learning curve.I invest in real estate only passively (for diversification), which means syndications.

A sale of a more expensive property followed by a purchase of several smaller fixer uppers is a classic 1031 strategy commonly called a diversification exchange.And it can be anywhere in the US and a couple of US territories (most notably Guam and the USVI).

That can be good for diversification and risk mitigation, but bad for returns.  

I am trying to build diversification in my financial plan and want to keep my tax advantaged monies in the market as opposed to leveraging into real estate but do not want to use up decision energy that can be used to find my next real estate deal. 

I agree with @Amber Gonion that diversification is important.

Diversification: if you have one property and a vacancy - that is 100% of your cash flow, whereas if you had 2-3 it would be half or 1/3 of your cash flow. 

Investing in a single property via Roofstock may be tax efficient but lacks diversification and needs a property manager.

Your post makes me think of diversification in an investment portfolio---diversify your sources of income the same way you diversify your asset classes.