Reminder that some geographic diversification in my portfolio would be a good thing. 

Find one good management company for all your properties.Diversify -- buying in different areas, use multiple management companies.I think for a large portfolio (20+ properties), diversification will help stabilize the investment.

And I feel the ideal portfolio can benefit from the diversification of both.I feel directly owned properties are great because they give me maximum control and the ability to tweak them exactly how I want.

For me personally, l'm a marginal RE investor at best but I'm very clear what my motives are: diversification to go along with all my other investments.

Texas is a good state to invest in not because of lack of state tax, but because it has net immigration, diversification of its economy away from oil & gas, property price recovery from the 1980s S&L crisis (mostly DFW and Houston), relocation of corporate headquarters to Texas, and low overall cost of state government.

This type of exchange provides investors with a way of increasing liquidity and diversification of their real estate investments, while deferring very costly capital gains and depreciation recapture taxes that may result from the sale of properties.

These deductions reduce your taxable income, which helps maximize your profits.Finally, real estate provides diversification for your investment portfolio.

•Diversification across different property types and markets reduces risk.

There's easily higher cash flow in other markets, there's not enough industry diversification for my tastes, the city is 55% renters which makes for a large renter pool but not necessarily the highest quality of one, and I've just never seen it as a "desirable" market outside of 1-time casual vacations there.

I'm looking at a diversification play with other properties in Nashville area.