Like you I like diversification

A 401k invested in stocks won't achieve the returns of many real estate investments, but it is a more passive investment that can help build wealth and can be part of a diversification strategy.

I worry about diversification, but until I find another location that works as well as Montgomery, I'll keep buying.

Diversification helps in this area too.

However, it's also diversification from my real estate assets, and diversification really is important.

Should also include population growth, job diversification, landlord laws, etc? 

I believe 5% is arbitrary or part of their much larger context regarding diversification, as I frequently see figures like 5%-10% used when discussing the maximum amount of your portfolio that should be invested in any one stock, sector, asset, asset class, etc.Another thing to realize as well is that followers of Dave Ramsey and followers of BP seemingly approach saving and investing in very different fashions but both can work and provide growth and financial stability based on the the person and their situation.It's up to us to determine which school of thought, or combination of the two (or the countless others, for that matter) is the best fit for ourselves.

Now that my brewery is off the ground, and diversification of income have begun- I am looking at properties.

If you are looking at buying several this year, market diversification may be of interest to you?

I am a pretty technical person and understood very early on in my life and career the importance of investing, the effects of compound interest, the value of diversification, etc.