Even adjusting the expenses and make them higher (~50-60% rental), some opportunities still seem decent, especially if one allocates a smaller portion of his/her portfolio, for diversification so to speak.Thanks

Purchasing no-equity seconds does enable us to spread more capital among more deals and have greater diversification in numbers.

The Securities and Exchange Commission has released an investor alert addressing Self-Directed IRAs and the risk of fraud.One of the biggest risks of owning real estate in a Self-Directed IRA is the potential lack of diversification.

I see what you're saying that there's the possibility of diversifying strategies with potentially larger returns.Do you think that a diversification of strategy decreases or increases your risk profile?

I think it is diversification. 

But now that I'm established, I'm looking for diversification by investing in residential real estate and believe that now I'm ready for it.

It is all about asset choice and diversification for the retirement plan.Whether an IRA or Solo 401(k) will best suit your needs depends on your situation. 

Often, the reasons to go with the low return real estate play have to do with control, diversification and asset protection rather than purely financial reasons. 

Diversification is key.

I am pretty big on diversification myself.