Diversification?

Factors like rent growth, job growth, industry diversification make these attractive markets.

Diversification is a great hedge, but all of those would also be effected by any unforeseen event.

Multi family allows you some built in diversification, if one unit is not performing due to vacancy or tenant issues, you are still receiving income from the other. 

Figure it as diversification with the potential for losses to offset your capital gains selling the equities. 

Small multi-family (duplex, triplex, quad) tend to have better rent to mortgage margins, and there's the inherent diversification by having multiple units in one property, but your tenants will tend to be more transient and have lower ownership. 

Personally, I'm about to invest in one or two funds, for the broadest diversification, as well as a few individual deals.

Always take the time to speak with a professional and see which is the best plan for your specific situation and needs.And both IRA and 401(k) plans when self directed are 100% about diversification of plan investments.  

The only time I have seen this work well is when used as a diversification strategy for an investor that is always buying property whether the market is moving up or down. 

Besides delivering relatively high yields, low volatility and several portfolio diversification benefits, real estate has consistently been favored by advisors and investors due to its ability to weather inflationary pressures while preserving and building value.The information provided here is not investment, tax or financial advice.