In your case, you would be tying up most of your capital that could be used to expand and diversity your portfolio.

I have been researching and reading to conclude the best emerging markets in Texas and am wondering if a city where the jobs are not as diverse because of the colleges, is a good investment market.

Hi all,I'm compiling a spreadsheet to help compare different potential out-of-state markets to buy and hold.Some hard and soft criteria include (1) job growth; (2) Population; (3) Diversity of Industry; (4) Housing Price Projections; (5) Landlord friendliness; (6) Real vacancy rates; (7) unemployment rate; (8) demographics (should target 18-64, am I right?) 

It also has a diverse economy with lots of jobs.

Just a reminder to myself, you are free to comment.VISION; to exit the rat race by or before 2030 with passive income after taxes at $60,000 per year, in diverse, allo-managed real estate properties.

They do not provide meaningful oversight or guidance with respect to tax code compliance.A checkbook IRA LLC is an enhancement on the above structure that is generally more time and cost efficient for investors with a more diverse portfolio.

. :)  I am like you, a proponent of diversity, I believe in the Stock Market, LONG TERM, and investing in tangible RE.

You have to look at population growth, diversity of employers in the area etc...Other things to consider ... harsh weather is harder on properties.  

While I acknowledge that economic strength is just one facet of a good rental market, it is a major factor and I wanted to share what I've found (the details of my methodology and raw data can be found after the various rankings):Top 10 best economiesProvo-Orem, UTSalt Lake City, UTCharlotte-Concord-Gastonia, NC-SCChicago-Naperville-Elgin, IL-IN-WIDallas-Fort Worth-Arlington, TXKansas City, MO-KSLongview, TXLouisville/Jefferson County, KY-INSan Francisco-Oakland-Hayward, CABirmingham-Hoover, ALThere were two main factors to overall economic strength that I looked at – how diverse/broad the economy is and how many economic drivers (i.e. strength) the area has.

FYI, Bushwick, Brooklyn NY is a very active rental market with increasing diversity of population ethnically and socioeconomically