Commercial Property Investing

[Simon Cox]

Hey Everyone, 

I just listened to the BP Podcast # 4 (www.biggerpockets.com/show4) with Frank Gallinelli talking about the idea of getting started with commercial property as opposed to residential. He made the point that most people lean towards residential because it's what we're used to and it seems to be easier and "more beginner." (for whatever that's worth)

The more I think about it, the more it sounds attractive to me. 

My goal is to replace my income through rental properties and trade up via 1031 exchange. I was planning to start with a duplex, tri or quad but if buying an apartment complex is possible. I'm thinking that might be a good route to go and a better starting point for trading up.

Has anyone else started out/done their first rental deal with a commercial property?

Frank mentioned searching for properties with low vacancy rates or low cap rates which could show potential for a value-add and upping the rents to the market level.

What are your opinions on this strategy?

Besides the numbers, what else should I be weary of.. or excited about?

Thanks in advance!