Commercial vs. Residential Real Estate Investing
Choosing the Right Investment Asset
Both residential and commercial real estate offer steady passive income, but their risk profiles differ significantly.
Comparison Highlights:
- Residential: Lower barriers to entry, shorter lease terms (12 months), higher tenant turnover.
- Commercial: Triple Net (NNN) leases, longer tenant contracts (3-5+ years), higher initial capital required.
Consider your liquidity needs and property management capacity before committing to long-term commercial leases.