CalculateRealEstateROI

Portfolio Building

How should I construct my portfolio?

Top-down: target allocation by market (3+), asset class (2+), and strategy (2+).

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Top-down: target allocation by market (3+), asset class (2+), and strategy (2+).

Expanded explanation

Avoid concentration: max 50% in one market, 60% in one asset class. Diversify across cash-flow vs appreciation, value-add vs stabilized. Document the thesis before buying deal #1.

Examples

  • 60% Midwest cash flow + 30% Sun Belt small MF + 10% STR vacation.

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