Your results indicate that you understand in order to get the best returns, it makes sense to diversify your portfolio. Using a mix of value add and debt investments could get you a larger return and enable you to create more diversification in your portfolio. For example, you could get monthly cash flow at 9% and then invest in a longer term multi-family, storage unit, or mobile home park deal earning 15%+.

What you want to under is that (1) Value add opportunities enable you to participate in the upside potential growth returns of the property. Because the operator is putting money into the investments to increase the value, you generally won't see a return right away. The benefit is that after 12-24 months, returns start to increase and once the property is fully stablized and upgraded, the returns will likely surpass what you can earn in a debt fund. (2) You want to understand the exit strategy of such a deal and the projections so you can understand when you might start to see returns. If you do not need the cash flow right away or if it is your retirement plan, you can wait out the longer period for a greater return. (3) You can offset these deals with a more conservative debt fund that has a collaterized asset in the first lien position and will pay a monthly payment to you. (4) With value add and new construction larger tax incentives will be available. Cost segregation, passive losses, and diverse appraisals are all strategies that can save you a lot of money.

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