Residential or Commercial????

4 Replies

@Steven Steward we would need more details to know which is the better strategy. In reality, the only difference between residential and commercial is the financing. If you are purchasing rental properties, you would need to switch to commercial loans once you get to 5 units or more. The concepts remain the same, and you actually get better leverage from commercial loans than from residential loans. 

If you are looking to jump to commercial properties (strip malls, shopping centers, office, industrial, etc) you are not really "starting small" at that point. Most of those types of investors are putting down more than 25%, so this arena requires deeper pockets. 

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