I focus on multifamily property because I am worried about vacancy with business tenants on commercial.
Any thoughts and experiences welcome!
@Aurelien Bonin they both have their positives an negatives.
Commercial tenants can be expensive to turn over and often require TI allowance. They easier to evict if they default. You don’t have to worry about rent controls on commercial.
Multi tenant turns are usually fairly inexpensive but can be harder to evict in the event of default and more and more state are passing rent control and tenant friendly laws that are making things more difficult on landlords.
Best bet is to focus on what’s working best for you and scale that. Focus is 100% of the game.
If location and area is strong then plenty of business tenant demand to refill the space.
I personally love commercial retail and dealing with business owners. They tend to keep the space clean for the consumers and you usually have landlord friendly tenant laws.
I have been down the multifamily route before and it is a more intensive asset to manage and a lot more BS with residential tenants and all of their excuses.
I didn't like it but I do not like regular residential SFR either. At 44 years of age I don't have time to listen to the BS anymore. I like more passive money with less headaches.
@Greg Dickerson Thanks for these, I like the idea of scaling and believe in the importance of focus!
@Joel Owens Very insightful in terms of tenant-landlord relationships
I'm a big fan of office space. My tenants are low maintenance (literally and figuratively), there is very little turnover cost, they sign long leases, and they pay promptly. Yes, vacancies may be a bit longer, but to me it's worth it.
One caveat: location seems to matter more with commercial rentals than multifamily rentals.
Hope this helps,