For me it is about diversification.

Diversification lowers risk; it does not raise the risk.  

I am Anchorage based - and would even consider investing in Bellingham for diversification - but tough to find something that will cash flow as well there right now as Anchorage.

RE investing is just a diversification of my investment portfolio, and something I want to learn and be proficient at.Before I get into any new business venture, I try and become as educated as possible so I'm not making mistakes as I go. 

Not enough diversification, but you get all the negatives of fund investing.

It also provides great diversification for your real estate holdings.

I'd say go with a REIT for this one, just to get the diversification.

Flip side is that that 401k has done well so diversification isn’t a bad thing.Like others have and will say, it depends on what you are trying to achieve.

Such vehicles are all about diversification and the ability to place some of your tax-sheltered savings in investment vehicles beyond just what Wall St. offers. 

Everybody loves real estate now  for diversification  Etc .