My real estate objectives were diversification from financial investments and cash flow.  

My point was look for diversification or stable industries when investing. 

If you're comfortable with debt and can qualify for this much financing, that $140k could give you several down payments.The point is you're in a position with a lot of options, and most of them will result in greater cash flow, fewer fees, and much better diversification.

What you're talking about is commonly called a diversification exchange and is a great growth strategy for the 1031 investor.

The good news is that I'm grateful to have done reasonably ok and beginning my diversification into RE with some capital to work with. 

Built in diversification, lower returns, and you probably need to be accredited.Syndications.

If you are asking if one strategy is riskier than the other then  the answer is mine is but thats only because of diversification alone.I think what you are asking is  what is the  riskier strategy. the only time my strategy would benefit me and hurt him is if the banks start having problems. for example if the bank calls the loan due for some strange reason he would be in trouble as opposed to me where I dont have a lender. 

Having multiple properties is just a form of diversification.

Diversification is a good thing.I personally have not had real success investing in the stock market - some good years, some not so good, overall mediocre. 

Warren Buffett"Diversification is for idiots!"