My goal was to be extremely conservative due to the volatility of the market and only buy great deals. 

If the note for particular property is individually owned by its own LLC and not an aggregated LLC2. if the valuation itself is true and correctThe problem with PS is it's super messy because of the two factors above.Pro tips: if you want to invest in a notes, invest to local note or local HML fund that's specialized in that particular region.In essense, if you buy into any "debt funds" nationwide, your risk is basically the macro economy structures, it's hard to explain, but if volatility is rising you HAVE TO MOVE money from aggregated/nationwide funds into a specialty investment. 

However, the stock market can be more volatile, meaning that stock prices can fluctuate rapidly and unpredictably, and it doesn't provide cash flow like rental income.It's important to consider your individual goals and risk tolerance when deciding whether to invest in real estate or the stock market, or a combination of both.

You don't have any volatility issue with down years.

I'd like fixed-income, but I really like the volatility of higher risk assets. 

More volatile, but an interesting investment and trend.   

There is higher appreciation on the coasts, but also considerably more volatility.

The market doesn’t always go up and you work and live in one of the most volatile real estate markets in the country.

The other is my personal residence that I have about 25-30% equity in and am thinking about taking a small HELOC against.The stock market has been on quite a volatile ride lately and my portfolio has done well since I grabbed some more ETFs at the bottom a few months ago.

I know more than one person who has considered leaving California and moving nearer to home in hopes of settling down and possibly raising a family - and not just because they'll be closer to family.As you mentioned, real estate is notoriously volatile, and if you're a more conservative investor California is one of the last places in the country that's likely to feel comfortable.