Note investing vs commercial property investing

[Brian Kempler]

Hi all. My only background is in wholesaling (SFRs). I am looking for feedback on what to expand into as my warchest grows. The main priority is not having to get in the car and drive places. Secondary is long term wealth. Cash flow is not high on the list but I won't turn it down. I see NPNs and maybe CRE as two strong options for my goals.

Current analysis is my $250k could wait until non-performing 1sts come down in price (prices too high at the moment). I'd look to modify the loan and reperform/resell (holding is another option). Failing that, foreclose and resell on lease option with a fair discount against repairs.

Commercial i know less about other than I do not want to get into apartments. I hear office and industrial is on the decline in general. i think that leaves retail. I could see myself looking for a small retail strip with 50% occupancy that is being neglected, setup a cold calling campaign to get some chain stores in there on good terms (for them). But upkeep and handling of deferred maintenance would be challenges if I don't want to visit. And as mentioned this is a hazy plan at best.

At this moment my hunch is that commercial is the better wealth builder. But further removed from my current experience, which is only house flipping. Notes although not something I've worked with seem easier to manage, probably in part due to being able to buy several NP 1sts for the price of a single down payment on a strip center. But no equity growth, appreciation, leverage, or tax advantages.

Those are my thoughts and I would like to hear yours for anyone willing to do a bit of comparison.