They are two very separate conversations.A self-directed IRA is all about diversification, and being able to put tax-sheltered savings to work more productively for your future self. 

@Matthew Creel unfortunately for me I live in California, one of Seven states that do not allow a State tax deduction similar to what @Eamonn McElroy is referencing for 529 plans, so the decision was easy for me, If CA offered it I'd probably do both since I believe in diversification when it comes to all aspects of investing.

You can also achieve a reasonable amount of diversification by having access to several markets.  

Also gives you some diversification.

I'll leave those reasons aside, since we're talking investment here.Pardon me if I forget any but here are the most obvious reasons an investor would buy internationally that come to mind as I write these lines, in no specific order:- Diversification- You don't find suitable opportunities in your own city or country- You don't want to invest in your city or country for whatever reason- You find better opportunities in other countries: higher returns and/or lower risks.Bear in mind that investing internationally differs from country to country and isn't one size fits all. 

Yes, diversification, in my opinion, is normally a good plan. 

Macro level: Rent to value ratios, Unemployment rate, Population growth, Major employers, Workforce diversification, Landlord tenant lawsMicro level: Crime rate, Owner occupancy rate, Vicinity to retail and jobs In short, we are investing in landlord friendly markets with high rent to value ratio, positive population growth and opportunities.

They just want the exposure in a given area to complete diversification.

Hi @Eric Hyde, if you’re looking to take a more passive role in your real estate and want the benefits of diversification there are funds available to accredited investors that are designed to allow investors the opportunity for ownership of institutional investment grade property that is occupied by regional, national, and Fortune 500 credited companies. 

Like you, I am also  not a fan of the 401k system but I can't pass up the free match (plus it adds a little diversification).