If you need cashflow, diversification, and the benefit of out of state markets, it might be a great investment.

Financial independence originates with a long-term view, a plan for diversification and a goal that some investments must offer sustaining cash flow from day one.

Many clients have a condo or rental as diversification and they are sophisticated enough to do well.

Diversification is my primary risk management tool.

Diversification is good.  

You wouldn't have to eat out every meal of course, it's all about diversification, but should every decision be based on whether or not you're maximizing money?

Maybe the diversification should be across several of your own businesses and not stocks, bonds, etc.

I am fortunate to have a reasonably healthy stocks&bonds 403(b) (401k for non-profits) and  am trying to build up some extra in a Roth IRA for diversification. 

Here's my question:  I am looking to invest an additional $500-$600k in another cluster of SFRs (2 - 4 homes, depending upon the price points) and I am looking for geographic diversification outside of California that will yield cash flow, and appreciate over a 5-10 year horizon.  

Type of job growth, demographics, industry diversification.