Diversification wins.

As with any passive investment, you're typically giving up control and higher ROI, in return for diversification and passivity. 

@Gurshan Bansal The criteria we used to identify markets were Landlord friendly states, steady growth, low unemployment, business diversification.

I like individual deals, because you can cherry-pick which ones are best suited for your needs/goals and I like having new deal flow throughout the year, but I like the fund structure for diversification and protecting downside risk. 

Look at population growth, crime, industry diversification and job growth, property value.

Lots of ways that can blow up in your face and result in a prohibited transaction.Tax sheltered retirement plans are designed for diversification of the plan, period. 

So I am leaning more towards diversification and keeping qualified accounts completely separate from my RE activities.

I've finished my research at theMSA level and chosen Columbus, OH as the market I first want to enter for various reasons; primarily budget, price-to-rent ratios, population growth, job growth, job diversification, etc.As I begin myresearch at the submarket level, I'm first looking to get a lay of the land ofthe different neighborhoods and ultimately map the city with"A"-"D" grades for each neighborhood.

I keep about 25% of my assets in the market for diversification, but often wonder if I should go all in with RE. 

The second metric I consider is the overall market; whether or not it is expanding and what job diversification is in the area.