Watch the Dim. Chord w/ 5th String Root online guitar lesson by Marcy Marxer from Swingin' Rhythm Handbook
The diminished chord with a 5th string bass is played with a hand position that feels natural to many people. It looks difficult but there isn't much stretching involved.
This chord repeats every three frets and you can even use the same name if you like. Play diminished chords up and down the fingerboard.