A: Diversification is good. However, when you own one home in the $250K range (or even under), that is not very much real estate. It may make sense to diversify after you own a few homes in one market, which will still not be much real estate compared to the place you likely live in. Spreading out the homes gives geographic diversification. However, working with a familiar team of managers and brokers also has its pluses. In addition, many of the metro areas are very large, and some diversification can occur within the metro area as well. Overall, this is a secondary point and depends on individual preferences. It is not of primary importance.