I figured a mix of retail and office would give me good diversification and that's why I'm analyzing the 2 level strip.  

I consider it as diversification. 

Tax diversification strikes me, but you have to ask yourself why 7 times to see if RE is for you. 

@Michael Harris, On the 1031 side of things, most investors in your situation would choose to do a diversification exchange. 

Moreover, I understood the importance of the concept of diversification aka not having all my eggs in one basket.The reality is that assets and money by themselves don't give you (financial) freedom if all you have is within a single country and at the whim of a single government. 

While many of you have been wondering about the future of interest rates and the economic climate, it seems a very overlooked area is diversification.

IF the market pulls back significantly , glendale will lose money just like everywhere else even if on a % basis its not as much the out right dollar amount at this point could be much more because this time the AV hasnt appreciated as much from the bottom whereas glendale has exceeded those levels from past highs.. but it can be argued that in AV i buy 3  250k places and now i have diversification of tenants and will still get like 1500 a door for a comparable size house in glendale....Its MUCH harder to find a tenant to pay 3500+ in rent vs a tenant to pay 1500 in rent (esp if govt subsidized) ....not to say that there arent bad tenants everywhere im just saying if i look at things somewhat equal.not to mention glendale is very likely reaching a point of overbuild with these mega projects all up and down brand / central blvd which could weaken rent prices or at least create a longer time to fill...anyway my point is that i am trying to make a prudent decision and mitigate all the risks as much as possible in order to make a good decision and hope this feedback has helped other readers as well... i am not really sold on AV which is why i wanted to have this discussionthanks for the feedback

Its great to see someone have a successful business and use that as a vehicle of diversification, I wish you the best.

I think cash flowing real estate does provide a great diversification tool to a portfolio.  

My reasoning: diversification.