I think both types of investments have advantages, and diversification helps with risk management.I'll admit, it's tough to complete a real estate deal and then spend the next few months quietly pouring a similar amount of money back into my portfolio... definitely feels a little boring at times.Your ratio is your choice, but I think it's good to think of it in terms of the relative advantages of each bucket and then manage accordingly:ETFs / Mutual Funds / Robo Advisors:- Diversified, by definition- International exposure- Higher liquidity- Very low overhead- Efficient + arbitrage opportunitiesReal Estate Investments:- Lower correlation with stock market in general (depends on your type, to be clear)- Typically higher income when compared with dividend payouts- Tax advantaged- Sweat equity, local knowledgeOn a personal note, I think that anyone who goes into real estate investment 100% should be doing it full-time.

Additionally the job diversification in Orlando has grown and is beginning to rely less on hospitality and tourism and making waves in industries like financial services, medical and manufacturing. 

While most on BP will tell you that real estate is the best thing ever (and there is some truth in it), I consider diversification the best friend of a retail investor. 3.

Look for areas with low crime & good employment diversification.

Put some money in real estate for the diversification and your fun money to mess around with and grow your portfolio.

I am not all in monetarily, (that would be stupid IMHO diversification is key in many aspects of investment & life) but I am all in as far as believing there is good in Real Estate.I started to believe when I committed to this system/network that I joined My affiliate (we are go'n worldwide) with local chapters expanding thought the USA & beyond.

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.

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

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.

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.