One piece of advice I often repeat is that the goal of diversification is to reduce or eliminate any single point of failure.  

Be sure to utilize tools of the trade for the best information.

We're been mostly looking at single families, but that's because we don't have a huge network yet of others interested.

I currently own a single family in Akron.

If the didn't do that then they have converted to LTR or MTR rentals at a steady monthly income and have the tenants take over the utilities which offsets the loss of more income.

@Chris Ke With $200K for a down payment and the ability to invest full-time, consider starting with a 4-plex or multiple single-family homes (SFHs) within a 5-hour drive of Los Angeles in areas like San Bernardino or Riverside.

Most likely raising funds from passive investors would utilize a Reg D 506 b or c safe harbor exemption from registration.  

These buyers are playing the long game—betting on rising property values and rents, which offsets initial breakeven or negative cash flow.If you’re starting out, I strongly recommend focusing on single-family homes in neighborhoods at the high end of the "low-end market" spectrum.

So I bought a single family home for 315k that was considered inhabitable.

Be prepared to show a lease, some utility bill, or credit card statement showing you live somewhere else.