Residential vs. Commercial Real Estate Investing?

Question

What are the pros and cons of each when compared? Thank you!

Chris Mason · Answer

I'd say the logical paradigm in the question is a bit off.

CRE includes everything from airports to golf courses to hospitals to campgrounds.

So saying "residential versus commercial" is like saying "bacon versus plant life."

Are we comparing bacon to Christmas trees, to apples, to venus fly traps, to tomatoes, to grapes, to kelp? What does the question even mean? Bacon is more yummy than a Christmas tree, but I bet I'm going to have a whole lot less regulation growing Christmas trees... however, before we even get to that, it's necessary to know that the inquiry is even about bacon v Christmas trees, rather than Bacon v grapes.

Basit Siddiqi · Answer

There is nothing false wiih what @Henry Clark said.

Henry Clark · Answer

OP commercial can be many types of investments.  Most of the bad noise right now is about downtown skyscrapers and REIT or Syndication apartment complexes where they played short term versus long term interest rates wrong.  Other commercial and industrial is fine.

Matthew Masoud · Answer

BRRRR is much easier doing commercials. I started with multifamily but price expectations have gotten out of control.

Just refinanced my multi-tenant retail property and pulled out much more cash than I put in.

Joseph Gozlan · Answer

I just posted a YouTube video about just that recently :-)

Ken M. · Answer

Where is it that I said what he said was false?  CPA's should be more careful on details. Mistakes and miscommunication cost people money.I did ask him to explain his transaction,  not an uncommon request, but he has failed to answer it."So tell us, how did you make $800,000 in profit in commercial. Why'd you sell if it's so profitable? What was the interest rate and when you went to refinance what rate were they offering? Could you even get financing?"Not answering a legitimate question, when making a claim, can be self serving and can lead people to believe the claim is false.

Henry Clark · Answer

Not a cute comment. Just responding to your negative comment.  Commercial and industrial are many types of investments.  If you personally are having trouble making a profitable deal, make a post and ask for suggestions.  The OP asked a direct question. The great thing about BP there are different people with different perspectives and experiences.

You can read the full story in our self storage post for that location.  Read through our deals 1 thru 14 and let me know if you have any questions.

Your in or near San Antonio.   There is a $2mm profit deal near New Braunsfel.   A $1mm profit deal in San Antonio.  .  Your in Texas.  The greatest property tax sale state.  $10,000 and sale for $50,000.  $8,000 sale for $200,000.

Residential vs. Commercial Real Estate Investing?

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