Its like the stock market.

Quick poll: just Yes or NoI have a managed account with chase that has been growing with the stock market.

@Kalen AdamsonNot tax advice as a cpa can respond but typically when you cash in stocks that gain is taxed (if owned for a while at qualified dividend rate).You could take the cash, hold money for taxes and put that money as a contribution to the LLC and then start investing in real estateIf you invest in real estate you may get depreciation etc whixh could be paper loss and potential reduce tax obligation but the entire picture needs to be looked at

Honestly I’d probably end up diversifying sales proceeds into stocks and some into DSTs to broaden my base.

I've never used one, but I think the advisor will put you in the "major" stocks, just like it was recommended to do an index fund. 

The only time one of my hot tubs was unusable by a guest was due to the heating element going out and there wasn't one in stock.  

I secured financing for my first property through a conventional 30-year fixed-rate loan, securing a favorable interest rate for stable and predictable long-term payments.

I have non qualified stock options through my W2 employer now that has potential in about 5-8 years to exercise.

TLDR; Why should an out-of-state investor buy a rental property in Austin instead of investing in stocks/index funds?

AirBNB is really a hospitality business more than a REI activity (it just uses real estate).I like long term rentals most because it provides predictable, stable income and that suits me and my wife better.