What's better multifamily or retail?

[Mitesh Parikh]

I am real estate investor, started out with townhouse. I am at the point where i have $100K cash, and thinking of persuing multifamily or retail (strip mall). Plus, i am limited in my time of day to day property mangement. 

In this situation...What is better multifamily or retail?

[Pat G.]

Mitesh:

Congrats on the $100K. That is good that you are limited on your day-to-day management because Commercial RE doesn't require as much of your time as single family residential.

When I owed my retail strip mall (24,000 Sq. Ft) I hired a broker to manage it all. From new tenants to the existing tenants, I was around the mall but nobody knew I owned it. 

Now if you go into apartments you can have a live-in manager or have an onsite management office, it all depends on number of units. 

Which is better, that will depend on the area you plan on buying in. My thoughts are people always need housing. You have to go into each with a plan, i.e. retail "I will only look at 3 store fronts and above (10,000 Sq Ft. +) or I will only look at 24 to 100 units in the apartment world. This way you know what you are looking for first and then find the area that holds those. 

Who is to say you can't do both? And you should not use your own money, keep the $100K in the bank and use private investors. 

Hope that helps and not confuses. 

Pat