The SFR's add an appreciation play to our portfolio and they attract a different kind of tenant, so we have some diversification. 

And I feel the ideal portfolio can benefit from the diversification of both.But you seem to be thinking about investing in directly owned real estate as a passive investment.

You could also use a group investing platform like Tribevest who specialize in helping groups invest together - this will help you lower minimums, increase your diversification and give you an instant network of people to learn and grow with.  

**Diversification does not guarantee profits or protect against losses.Using DST properties as opposed to NNN properties for your exchange:• Diversification – Don’t put all your eggs into one basket!

Do both 😎👍Better diversification can give you better protection.

So our decision is more along the lines of whether to take advantage of this opportunity that I believe would hold/increase it's value well enough (and provide additional diversification), or sit on cash.All that said, my initial enthusiasm has waned a bit. 

My thought is that it offers diversification + rent and vacancy stability.

At the very least, commit to a diversification ratio that's realistic.

The overall account balance of the IRA has not changed, but the diversification of the funds within the IRA has (less cash, more house). 

Asset Diversification: Many commercial real estate investments have high acquisition prices (think $10M+) where most people don't have access to.