Diversification of your portfolio, both geographically and by property type, can spread risk and mitigate the impact of localized economic conditions.

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

Given your situation and concerns, here's a breakdown of considerations and advice:Pros of Renting Out Current Home and Buying a New Primary Home:Living Condition Upgrade: Moving to a larger, newer home with boutique features can improve your living space.Rental Market: West Town in Chicago generally has a strong rental market, which could provide good rental income from your current home.Portfolio Diversification: Adding another property to your real estate portfolio can enhance diversification and potentially increase long-term wealth through property appreciation and rental income.Cons and Concerns:Interest Rate: The current interest rate of 7% on a new mortgage is high, and there's uncertainty about future rate decreases.

Sort of looking at this as diversification of my portfolio.

the buzzword  is diversification - but with the purchases I made at the time - real estate far outperformed the stock market.  

Here are some key considerations to aid your decision-making process:Diversification: While the allure of Cape Coral's potential cash flow is undeniable, diversification can be a prudent strategy.

THAT is awesome diversification, and diversification (to me) is more important than the extra money that active MF investors may or may not make.

Most lenders who operate in this space protect themselves with yield and portfolio diversification.

Real Estate Investment Trusts (REITs)- Diversification: Invest in REITs to gain exposure to a diversified portfolio of properties without the need for direct management.

There are different types of investment properties, such as multi-family properties, single-family homes, and beach houses/student housing near universities, which offer income diversification, house hacking potential, and scalability.