Diversification of different asset classes and markets can also help, but then you run into the problem of investing outside of your area of expertise, which can have its own risks.

I agree, diversification is crucial, that is why I will continue with my current W2 income and 12% 403(b) contributions that are 4% matched by employer that increase annually.What are your thoughts on the old mantra of BP talking about going a "mile deep but an inch wide?"

This is a classic 1031 strategy called a "diversification exchange". 

That being said, most financial planners tend to focus on diversification above all else and are trained to think that way.  

Teach them about investments and diversification.

You can invest from abroad and I think that is what makes syndication a great avenue because for many some of the best markets and deals are not in their geographic area, providing diversification and ease of management oversight since you are not having to do the work. 

@Jon Crosby Diversification - he was able to get a 2nd property in a smaller vacation town w/ faster appreciation but much smaller vacation rental  scene - relatively riskier but I think an interesting choice.

Hi Jim,I tend to lean towards diversification..

Lots of great podcasts out there as well.A couple of great advantages of MF are: 1) the value is based on the NOI (net operating income) that you create, as opposed to comps. 2) The diversification of risk.

Hi all, hope everyone is having a great start to the week.After reading a lot of posts on diversification, I'd be interested in hearing out of state / remote investors' thoughts on balancing the effort+time it takes to learn an area and build an effective team there with the desire for diversifying their investments across different regions or states.I'm sure people have approaches all across the spectrum, but I think it'd be really insightful to learn about your experiences, both good and bad.