@Gladys Villa one important investment principle is diversification, and it’s hard for most people to diversify with CA investments because of the higher barrier to entry.

I do use RE as diversification - 50/50 stocks to RE.

Since you said you want to be more passive, here are your only options in my opinion:1) 1031 into A DST 2) Sell and pay capital gains tax and take proceeds to invest in mortgage notes at 12%3) Keep what you have and hire a property manager.4) Do a combination of all 3 above for diversification purposes. 

But there is more types of cash flow than dealing with the three Ts .. so maybe some diversification could be in Order for the experienced investor.

And I feel the ideal portfolio benefits from the diversification of both (and that's why I do both).And, what I see on this conversation is that some people are looking at *one* particular type of syndication and assuming that *all* of them must be the same.

This assumes the market rent for the unit I will be moving into.My goals from entering real estate are 1. add diversification in my investments (right now heavily invested in stocks) and 2. house hack, so that tenants pay part of the mortgageIn my current market, I have two options: a. buy older houses, renovate, bring the rent to market --> this will cashflow, but needs a lot of time investment which I don't haveb. buy turnkey properties: --> renovated and already occupied by tenants but may not be cash flow positive.I found a property that's type B.

You'd basically be unsecured, and the only true way mitigate risk on unsecured debt is diversification.

Options may include traditional mortgages, private lenders, partnerships, or even self-directed IRAs.Calculate all potential costs including property acquisition, renovations, property management fees, taxes, and maintenance.Property Selection and Due Diligence:Use your local team to scout properties that match your investment criteria.Conduct thorough due diligence including property inspections, financial analysis, and reviewing rent comparables (rental rates in the area).Make Offers and Negotiate:Submit offers based on your research and due diligence.Negotiate terms that are favorable to your investment goals, taking into account potential repairs or improvements needed.Close the Deal:Once your offer is accepted, work with your local team to complete all necessary paperwork and close the transaction.Ensure all legal aspects are handled properly, including title searches and property inspections.Manage Property Remotely:Hire a reputable property management company to handle day-to-day operations such as tenant screenings, rent collection, maintenance, and emergency repairs.Establish clear communication channels and expectations with your property manager.Monitor and Adjust:Regularly review your investment performance and financial metrics (cash flow, occupancy rates, expenses).Stay informed about market trends and adjust your strategy as needed to optimize returns or mitigate risks.Long-Term Strategy and Growth:Evaluate opportunities for portfolio expansion or diversification in the same or different markets.Continuously educate yourself on real estate investing best practices and market dynamics to make informed decisions.By following these steps diligently and leveraging local expertise, you can effectively navigate the complexities of out-of-state real estate investing and build a successful portfolio over time. 

That way you tap into decades of experience, and some diversification across deals.

This is just an international diversification play, and I will tell you that the coffee market has some very interesting and compelling dynamics, vice always sells and caffeine is a legal drug.