Maybe I should put my $50k in the S&P but the reason I wanted to get into REI was for the diversification and growth potential.

(cash flow, long-term wealth, diversification, tax advantages, etc.)• What is my minimum acceptable return for an investment?

The AZ property would give me geographic diversification and potentially higher upside, but it would be remote and more management-intensive.

For diversification, I also invest in the Marshall Reddick Mortgage Fund.

You can utilize the 1031 exchange in many ways, like consolidation or diversification, to scale your RE portfolio and access markets with more cash flow and appreciation potential.

I see a lot of investors leaning toward diversification right now because STR performance can vary seasonally and operationally.Blending one STR with a duplex or triplex in the Midwest is not a bad hedge either.

Seasonal tourism from winter visitors—often referred to locally as "snowbirds"—also contributes to consistent demand for housing during peak months.For real estate investors, this tourism base helps support multiple property strategies, including vacation rentals, seasonal rentals, and long-term housing for workers in hospitality and service industries.Airport Expansion and Improved AccessAnother indicator of the region’s growth is the expansion of Palm Springs International Airport.Passenger traffic has increased significantly in recent years, prompting long-term infrastructure planning that includes terminal expansion, additional gates, and increased parking capacity.Current projections anticipate approximately three million annual passengers by the early 2040s.Improved air connectivity tends to support resort markets because it increases accessibility for vacation travelers, second-home buyers, and remote workers who split time between multiple locations.A Diversifying Regional EconomyWhile tourism remains central to the valley’s economy, several other industries are growing as well, including:healthcare and medical servicesrenewable energy developmentagriculture and food productionlogistics and transportationEastern Riverside County is one of the largest renewable energy zones in the United States, with significant solar and wind development.Economic diversification can help stabilize housing demand because it broadens the local employment base beyond a single industry.Infrastructure and Transportation CorridorsThe valley benefits from several major transportation connections.Interstate 10 runs directly through the region, linking Southern California to Arizona and the rest of the Southwest.

I’m currently structuring a two-unit short-term rental arbitrage opportunity in Seattle built around event-driven and seasonal demand cycles and would love feedback from others who’ve operated STR arbitrage or navigated major event markets.High-level structure:• Unit 1: May 2026 – January 2027• Unit 2: September 2026 – May 2027This staggered approach allows capture of late-summer tourism, fall sports, holiday travel, and spring demand, while also positioning around anticipated lodging compression related to the 2026 FIFA World Cup, which is expected to shift travel patterns before and after the event due to pricing and inventory pressure.The strategy centers on:• Strong operational leverage during peak periods• Risk mitigation through fixed costs• Demand diversification across tourism + business + events• Seasonal + event-driven ADR optimization• Hybrid short-term + mid-term stay targeting• OTA + direct booking channel diversification• Conservative underwriting assumptionsI’m especially interested in insights from anyone who has:Operated arbitrage in major event-driven marketsManaged staggered lease timing across multiple unitsUnderwritten STR performance around World Cup, Olympics, or similar eventsHappy to compare notes or walk through assumptions privately with anyone interested.

Long term holds plus a few STRs is a solid combination for diversification. 

Similarly, there are people who pay cash on deals, and just want the diversification and safety play that can come with real estate.