The limited resource is not money but attention. We could raise much more money than we do now. But if we got into the real estate business, we'd have to have people to oversee it, which would change both the size and character of YC.

Plus we have no particular expertise in real estate. We have some insight about what startups need, but I suspect it is more than counterbalanced by our ignorance of real estate. It's better if we stick to what we're good at.