What I saw about Deltona intrigued me, but I'm still in my knowledge gathering stage in that market.While I like Texas (and plan to buy one more rental in Texas this year), I want to have geographical diversification since I don't live in any of the markets I buy in and am location agnostic.

BrooklynHi Jennifer,Well done on your success and huge equity gain thus far.I am a firm believer in building the foundations of a portfolio with cash and once a certain cashflow amount is pouring in each month, then leverage can come into play for diversification along with speeding up the growth.

Originally I'm from Germany but moved to Silicon Valley to work as a Software Engineer.About a year ago I was looking at my investments and realized that I want more diversification than just stocks and bonds could offer me.

You lose out on diversification but I think efficiency gains (especially for a passive investor) make it worth it.    

So this just highlights one of the main reasons for using a business entity- it also makes a good argument for diversification of assets into multiple entities to spread risk.

Donald Trump will have one answer for you, Warren Buffet another.Since I'm no genius I believe in diversification among asset classes.However I do overweight into real estate because I believe that class favors local opportunism.

I think that if you can swing both, then it gives you better diversification and the best of both worlds.  

Once the funds are in the DST the funds can be directed to a new LLC which can own, develop and run a business all while remaining tax-deferred.5) Liquidity and Diversification:-Convert an illiquid asset, like a business or commercial real estate, into a diversified portfolio of liquid investments.

Remember, with a self-directed IRA, it is all about diversification for the IRA to obtain better results for the IRA. 

You want that diversification.