text: should property holding companies diversify their portfolios?   absolutely and if the bylaws allow it and the investors and board approve it, it is not a bad idea to diversify into other investments like equities or shorter term investment grade bonds. rather than taking cash positions when a property is sold, or with profits, because the market is indeed tightening it is wise to hold on to some appreciation, even if it is under 10% than to 1031 or hold cash.  right now the strength in the housing market is in the midwest, west and scattered in pockets across the country. condos are weakening faster then single families and larger commerical projects are losing appeal faster than middle market ones. so yes, shake up your portfolio.