When looking more seriously into real estate investing, I’m trying to figure out if I should stick with residential or start learning more about commercial deals.
Residential seems more straightforward, easier to finance, more people looking to rent, but I’ve heard commercial can offer bigger returns if you do it right.
For anyone who’s done both, what were the biggest differences? What do you wish you knew before jumping into either one?
Appreciate the insights while I’m trying to figure out which path makes more sense long-term.
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so many good points already.
For those who’ve done both, how did you decide which property type to focus on? Was it about capital, market timing, or just personal preference? I’m leaning residential for now but curious if anyone made the switch and what triggered that decision.
I’ve stuck with residential because I value stability and predictability.
Even during downturns, people need a place to live, so vacancy rates tend to be lower and cash flow steadier. Plus, it’s easier to get started with less capital, and you can scale up as you learn.
My biggest lesson: Focus on areas with strong rental demand and don’t underestimate the importance of good property management.
If you’re new, residential is a great way to build experience and confidence before branching out.
Commercial real estate has been a big win for me, but it’s not easy. The profits can be great if you get a good tenant, but the risks are real, long empty periods and big market changes. I’ve learned how important it is to know the local area and always have a backup plan and some extra cash just in case.
Commercial equals bigger paychecks, longer vacancies. It’s all numbers and business plans. I love it, but it’s a different beast than residential. Start small and partner if you can.
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I started with a house hack, then duplexes. Helped me build confidence and capital before jumping into commercial. You learn the people side first, then scale up.
