Otherwise it is like Gambling If You invest in real estate and buy REIT, it is disadvantage to you return because you are double exposed to the same risk in the same industry.  

You can start with less, but the lower you go the more you're gambling with your investment.

But I'm planning to diversify the portfolio towards $flow+ in the near future, since appreciation is just another type of gamble (calculated risk, but still).

It’s a gamble, have a back up plan.

When I book hundreds of rooms at a shot, they tend to give me the best pricing, since DUH, it's vegas, they aren't making their money off the rooms, but off the gambling, the liquor, etc. and Im putting several hundred corporate people in their property who are all going to spend money.  

I don't think there's enough potential up-side to take that kind of gamble.

@Howard L WeinstockAs you alluded to yourself, all this is a gamble on the future of SS system and on your own longevity.

It's a gamble in some ways, as I don't know if I'd be able to build what I want due to zoning.prop #2- crappy neighborhood. 1/4 acre, BUT-has a single family house, small garage, plus warehouse space that's ~2500 sq ft. zoned C. cheap. house is also a total rehab. closer to "move in ready", but honestly, the crime in the neighborhood is to the level that I don't think I'd bring my kid there now.

(not counting the renovation) I think it's tough to find a deal like this in Chicago on the North Side, where you can sleep peacefully at night and not worry about someone breaking in, or a drunk and disorderly, including being located in a  highly rated school district...I understand appreciation, and gambling on neighborhood gentrification isn't a primary concern of mine, this is a risk-free, safe return play.

Banking on appreciation is like gambling.