They are paying cash, because it’s treated more like a CD in their portfolios and provides diversification AWAY from banks.

They (1) identify rundown but high potential properties in (2) many markets across the country (offering geographic diversification for investors), (3) do the renovation on your behalf so you take over a rehabbed and “turnkey rental property”.

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.

While I understand this concern, I believe it's important to consider the potential benefits of investing outside of your local market, such as increased diversification and access to higher-performing properties.

I to am looking for diversification, but have ended up with Western Canada as an option.

That’s why many investors focused on the high-tech sector buy shares in the NASDAQ-100 – an ETF with a heavy focus on tech and biotech innovators – instead of buying stock in individual companies.Minimizing real estate investment risk with diversification works the same way.

There is diversification in multiple investments in different markets, operators building Fund (several assets in one offering), or a mix of Self Storage and Large Value add multifamily. 

Brandon also noted that as you increase your properties, the diversification can offset your risk.

Even within real estate diversification is important.  

Given that we have limited funds upfront to invest with, I would want to get the most bang for my buck (3-5 properties instead of one for the same amount) as well as diversification to lower the risk, with trusted property management in place of course.