Quote from @Pierre Guirguis: I think the framing might be the thing that’s stuck, not the decision.Selling 20% of your net worth only makes sense if the deal is doing something your index funds can’t - either durable cash flow, meaningful tax efficiency, or a risk profile you actually want to own.In NJ right now, most 2–4 unit deals don’t cash flow unless you’re either:very conservative on leverage, orunderwriting a value-add that actually materializesIf the numbers only work on appreciation or “rates coming down,” that’s not diversification, that’s just moving risk from public markets to local execution risk.Waiting isn’t inaction if you’re clear on what would make a deal objectively better than staying liquid and compounding.

.- No one particular industry takes over more than 18% of the job pool leaving plenty of diversification for a safer market to invest in.I would focus on the school as 15k students is still small size school but look at what has been the trend for the last 3 years is the school growing and if so by how much.  

When managed well, that diversification can help balance revenue throughout the year. 

You still get the low cost per door, you still get diversification of rent inflows, you avoid single family home class B-C properties, and you benefit from having all your units in one place.Also consider if you were to occupy one of the units in a multifamily in California, you'd be able to benefit from owner-occupied low down payments.

Whether you want diversification or consolidation, there are different strategies you could utilize the 1031 with.

Quote from @Stephen Heebner: @Lauren Sanford and @Chris Seveney - I am invested in 7e, but as for some diversification, which I believe in to a degree, are there other funds out there that allow for non accredited investors?

And I feel the ideal portfolio can benefit from the diversification of both.I feel one of the main advantages of passive investments (via syndication/crowdfunding) is that I can hire a manager who has years more experience than I can ever hope to obtain myself.

You give up early passivity, but in return you get control, diversification, and multiple ways to create value beyond just rent increases.

This strategy is what we call a diversification exchange, where you sell an investment property and reinvest in multiple investment properties in a 1031 exchange.

It's about TRUE diversification.