It also magnifies exposure to the market.

Tourism has definitely increased due to exposure from outlets like Nat Geo because of the manatees.

When you buy houses, make sure you try to do 10-20% of portfolio exposure in STRs(don't need to be in same city you invest in LTR, ideally not).

I suppose if I found a REIT that invested in multifamily with very little floating rate exposure that was also heavily discounted, that might be a good deal.  

Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

For illustration purposes perhaps that technique would be more accepted when you are a vendor mowing a lawn or clearing out junk as a one time engagement but as a property manager there are significantly more pitfalls and potential instances of liability exposure.

Physical assets are a different animal.If you're not really familiar with equities, but you want to exposure to gain something that'll appreciate in value then sure go spread yourself around and buy a lot of funds, stocks, and make sure you aren't allocating more than 3% or 5% or whatever dumb allocation folks have anywhere. 

Ok, here it is, I will broadcast my tripple-diamond "secret sauce" recipe: (A) exposure, Exposure, EXPOSURE.

Can cancel at anytime due to exposure of risk .

My guess is they limit this to SFR's under $500k and they err on the side of understating by at least 5%-10% to limit exposure.