I would love to talk to you more about the markets that you're in and even more diversification in my investment choices.

Not saying to have no exposure as diversification is important, but perhaps limited exposure would be the safe way to play it right now coupled with another form of investment.

(in the voice of Ross Geller lulz) when we need to.As far as flips versus buy and holds, I'm a huge fan of diversification especially in the current economic climate. 

I'm hoping to mix the strategy of buying purely for cash flow (sub 30k properties) with some higher end properties (100 - 200k) for diversification purposes.  

This can allow a person to get much better diversification protection across geographies, asset types, strategies, investment subclasses etc.

Diversification is key.

Its about diversification.

When doing a diversification or consolidation exchange the IRS is not concerned with the number of properties but rather the amount.  

While I know there are lots of tax advantages to rentals (not to mention asset diversification and the use of leverage), it has just been easy for me to put money in index funds and set it/forget it.I looked at a house this week and almost pulled the trigger...$70K purchase, only needs about $10K in paint, molding, tile...simple stuff.

If I were to buy properties with cash or leave a substantial amount of cash in them, then my expected long-term net returns will essentially be like REITs, but with less diversification.