I believe in asset diversification to spread risk across your entire portfolio.

As I grew my portfolio I quickly decided to try out other markets as well not only for diversification, but also to expand my knowledge base of other locations. 

The minimum investment is $10, which is to allow broad diversification for a portfolio of any size.

I have looked at a number of other areas in the U.S. for possible diversification, but never grown comfortable with any of them. 

Equal of better quality properties are often a fraction of the cost of a like-for-like property in the US in a like-for-like place, the operating costs are much lower, property taxes are almost 0 and you can oftentimes rent for higher prices.If that's wasn't good enough reason, diversification is the rule # 1 of a serious and smart investment strategy.

This could include having extra funds set aside or alternative investment options.ConclusionIn the world of real estate, there are valuable lessons to be learned from both successes and failures.The failed hedge fund's experience teaches us that diversification, paying attention to warning signs, long-term planning, seeking expert advice, and having a backup plan are essential aspects of successful real estate investing.So, if you're thinking about entering the real estate game, remember these lessons.

@Marco Silva data: population growth, job growth, housing supply, landlord friendly laws, purchase price, anticipated rehab cost, property tax rates, insurance cost, is insurance cost rising quickly, expected rent, rate of rent growth, can someone with the median income afford the rent, diversification of the economy, quality of local schools, crime rates, is the property next door a dump, how many other people are bidding on the property, is there a Starbucks nearby, is there a grocery store nearby, are there multiple property managers nearby in case one fails.There's so many ways to find deals, to name a few: MLS, wholesalers, foreclosure auction, tax sale auction, doing your own marketing through a bunch of different channels like direct mail.

Great for diversification and rainy day fund.I agree with @Jeff White.

I can't possibly see how gaining more diversification and more control can be a disadvantage. 

In a highly competitive market, a larger down payment might make your offer more attractive to sellers.Investment Diversification: If you opt for a lower down payment and invest the remaining capital, what are your targeted returns on those investments?