Commercial or Residential

[Eddy Wehbe]

Given the current market in South Florida and interest rates in general, is residential investment still the best way to go? I am seeing a lot of commercial opportunities, but I do not have much experience in that area. Anyone who invests in both who can give his/her experience? 

[Eddy Wehbe]

Quote from @Scott E.:

Most people agree that residential is the best way to go for your first couple of deals. If you have zero experience in real estate, buying a house is a transaction that just will be easier to navigate.

As far as where the biggest opportunities are though, that's another story. From what I'm seeing and reading, there are bigger opportunities in commercial right now than residential. Buildings are selling at higher cap rates and lower price per square foot. Plus a lot of people are forecasting defaults on multifamily and office loans.

If you're a beginner I still say stick with residential for the next couple of years. If you're more experienced and you have a lot of capital to work with, start learning more about commercial.

 Hi Scott, thanks for the advice. I've been in the residential real estate for years and ready to move to the commercial.