Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 7 years ago,
Multi-Family First Deal: Commercial or Residential?
I'm beginning my real estate investing career this year, and want to go straight into multi-family income property investing. My goal is to double my units each year for the next 5 years with the long-term goal of reaching a property size where an in-house staff can be utilized and take advantage of the economies of scale that offers.
Knowing I'll have to utilize commercial loans in the future anyways, I'm considering going straight into the commercial space, albeit the smaller end to start (5-8 units). My thought process is to go as big as I can (safely), and while going with a larger property to start will have a steeper learning curve than a residential loan on a 3-4 unit place, I figure it can help me learn the commercial space from day 1 and grow my portfolio faster. I plan on utilizing property management anyways, so besides the additional diligence up-front on a commercial loan, and potentially having to bring in some outside investor money, any insight or advice on my strategy would be greatly appreciated. Thanks in advance.