New investors often weigh whether to enter residential or commercial real estate. Both offer advantages—but they serve different goals.
Commercial Advantages:
- Longer leases (3–10 years)
- Higher income potential
- Tenants often cover operating expenses (NNN leases)
Residential Advantages:
- Lower barrier to entry
- Easier financing options
- More liquid market
Takeaway: Commercial offers scalability and stronger returns, while residential offers accessibility. The best choice depends on your investment strategy.
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