@Ray Li  Diversifying across 2 or 3 sponsors would be good from a diversification perspective but as an investor I've always learned what good (and bad) looks like with every deal. 

It does seem diversification out of this market through this loan is a reasonable idea.

A diversification exchange can be a very powerful way to build your RE portfolio.  

As stated above @Randy Johnsonthe model is very hands off and allows for diversification through a portfolio of ten properties.

The six units are the way to go...more diversification.

The important component of diversification is to understand what you're investing in first prior to taking action. 

It's called a diversification exchange. 

Management first, master lease investing involves higher risk so management allows for diversification.

That said, the Houston market is still a great market to enter due to the diversification of major employers, job growth, population growth and business and landlord friendly laws (State of Texas). 

It gives you economies of scale, diversification, and more clout with the property management (you could even have enough revenue and work to hire your own handyman or whatever to do everything at that point).If you're thinking nicer neighborhoods in the midwest, which are still way cheaper than SLC (is that what people call it???)