., cost segregation studies), carrying forward 2024 losses, and accelerating deductible expenses to reduce taxable income.Shift to Passive Investments: If management has become burdensome, hire a property manager or transition equity into more passive assets like turnkey properties, syndications, or REITs to reduce workload while maintaining income potential.Expand or Reinvest: Use your equity to acquire new cash flow-positive properties in markets with strong fundamentals, focusing on diversification and long-term stability.By refinancing, selling underperformers, or paying down debt, you can improve liquidity and cash flow.

The three ways to handle the risk are (1) gaining knowledge and experience in both investment in general and in the area you’re investing in specifically (2) extensive due diligence and when the inevitable bad outcomes occur despite (1) and (2) then (3) diversification.  

If consistent cash flow and diversification appeal to you, this might offer the best blend of growth and flexibility.Ultimately, it’s about balance: if you want to prioritize appreciation with minimal hassle, the first two options shine.

@Karan SinghTo build a solid real estate foundation, prioritize wise time management, early pre-approval, early credit building, real estate partnerships, income diversification, networking, and learning from books and podcasts.

This approach allows them to add value, increase equity, and create rentals that can generate strong returns.If you're thinking about commercial real estate, there’s definitely a learning curve, but the long-term stability and potential for diversification are huge pluses.

., Good point about diversification into multiple DSTs. 

Also you can look at it as diversification with one side of the duplex section 8 and the other not. 

., In the middle of the. partial exchange/diversification exchange you are exploring is another very important strategic consideration that can really propel you forward. 

I am far from a financial advisor (which I hope you have a good one), but there are a lot of benefits to diversification and investing in RE. 

@Matthew Brown If you don't mind diversifying your real estate portfolio there is a way to take advantage of both financing options and all of the benefits of the 1031 exchange.There is something known as a diversification exchange that allows you to sell your relinquished property and purchase multiple replacement properties.