That’s a great question and one I think often business owners and professionals who’ve built strong skill sets try to evaluate, how (and whether) to make real estate a full-time focus.From a tax perspective, you already know real estate can be an incredible wealth-building tool, but timing, structure, and diversification matter more than ever in today’s market.

Diversification is important for sure.

If you already have reliable local help and can handle light management, the upside and diversification seem worth the move.

Exactly. 20% of our portfolio are voucher tenants and we have that diversification for a reason. 

@Lisa Lucero, what you are referring to is what we call a diversification exchange, when you sell one investment property and 1031 exchange into multiple smaller investment properties.

Scale only works if each asset meets the same bar.Model approachI built my own underwriting model, but many solid templates exist online now.Key focus areas• Purchase basis (true landed cost) vs comp set• Rehab scope and sensitivity• Rent comps and lease-up timing• OpEx realism (maintenance, turns, taxes, insurance, management)• Debt structure and stress tests• DSCR and breakeven occupancy• IRR, equity multiple, unlevered and levered yield• Market concentration vs diversification• Hold period assumptions• Refinancing and interest-rate exposure• Lease absorption• Downside stress tests (rent drops, tax increases, insurance shocks, rates, vacancy)How I use it• Every deal goes through base, downside, and worst-case underwriting.• Comps and cost assumptions get cross-checked across multiple sources.• I separate the “investor story” from “spreadsheet reality.”

The idea was to create diversification across many wells and reduce the risk of significant losses if a single deep well failed to produce oil.For this fund, G2 reportedly raised approximately $22 million from around 270 investors.

But if you want true investor-level tax advantages and control, direct ownership (even small-scale) usually wins.Curious — are you looking at fractional investing as a stepping stone, or more for long-term diversification?

Another $100K–$150K can go toward a small multifamily or BRRRR project to build equity and create refinance opportunities, while $50K–$75K in passive syndications adds diversification and additional depreciation.

I believe for the patient mostly passive RE investor that leveraged RE can do well but1) residential RE is not passive, especially compared to index funds and etfs.2) because non commercial residential prices are near an all time high, interest rate is near high for this century, rents are all time worse compared to costs (per 2 recent studies) that you would be entering RE at a challenging time and a time were most RE will not produce the returns that were easy to achieve prior to 2022.3) RE provides diversification, but may not far exceed the returns from passive options.