Question:
“What are the advantages of investing in residential rather than commercial real estate?”
Answer:
Great question.
Each has its advantages. I always recommend residential for new investors as overall it’s much simpler than commercial real estate.
Though I wouldn’t necessarily say residential is easier. You could argue that dealing with residential tenant issues are more work (clogged toilets, bouncing rent checks, etc.).
But there’s much more to know (e.g. “triple net leases” and traffic flows) and a higher level of sophistication required when evaluating, buying, and selling commercial real estate than residential.
For more experienced investors, you’re likely to get a slightly higher return with commercial real estate.
Hope that helps!
