When deciding which type of real estate to invest in, commercial or residential, one needs to have a clear picture of the particulars of each. Most beginners pick residential real estate as it's easy to buy and borrow money on. Here's a brief list of commercial vs residential.
Commercial
harder to borrow money
larger down payment
longer leases
harder to fill vacancies
tenants are responsible for minor repairs
lease is in years not months
tenants usually pay all utilities
Residential
shorter leases
easier to fill vacancies
easier to sell
small down payments
easier to borrow money
tenants can be a pain
landlord responsible for most repairs
These are just a few examples of the pros and cons of each. There are books that cover the subject well. I recommend Real Estate Riches by Dolf DeRoos to get a better understanding of commercial vs residential. Like any purchase do your due dilligence well and you have a good chance to profit.
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