Account ClosedOut-of-state investing offers market diversification, lower entry costs, and economic opportunities, but also presents management challenges and increased costs.

Thanks A lot has been written on BP about R2R and everything looks solid.I'm a big believer in sticking with 1 market until you build a large enough portfolio and diversification is justified.Like with many investments and not just turnkey, it's important to build a large portfolio.The time and associated risk isn't worth buying 1 or 2 properties if you expect a significant impact on your bottom line monthly cashflow.Most turnkey properties are sold at fair market value or slightly above.Nothing wrong with this as long as property management is solid and does their job with integrity.Buying turnkey you won't have built in equity so no growth can be manufactured and you will have to wait for the market to grow to see an equity gain.Thus, IMO it's important to have mindset where you endeavor to build a large enough portfolio so the monthly cashflow makes sense and the portfolio becomes safer.Much success

I'm also invested in one of the funds that @Ian Ippolito refers to and actually make higher returns on it with more diversification (over 100 loans).

Also, although we like the idea of diversification, we understand that buying a single rental property is itself a highly concentrated investment.

If the market goes well, they can 5X the initial investment, take 30% carried interest spread on $50M, and buy a ton of luxury real estate to take even cooler pictures of their life on Instagram. 2) Extreme diversification, sprawling, "strategy and synergy free" portfolios:The other take that is possible from naive social media followers, but not from sophisticated family offices or private equity shops is one where a syndicator raises a ton of money across multiple different types of asset classes in a seemingly random set of geographies. 

The thing I love most about Cleveland is the diversification of the areas, there will be something out there for every type of investor.If you'd like to hop on a call, I'd be happy to discuss this further and hopefully help provide some insight for you. 

Isn't diversification a basic principle of building and keeping wealth?

Diversification can lower risk allowing for higher return/risk investment for a percentage of the portfolio.

Local economic conditions can vary by neighborhood.Key Considerations:Local Economy: Research the economic stability and diversification of each city.

Check to see if this fits with your wealth-building and portfolio diversification goals by taking into account your entire investing strategy and financial ambitions.Finally, carry out a comprehensive risk analysis.