Single-family or Commercial?

[Nicholas Litchfield]

Hello everyone!

My wife and I are fairly new to investing in real estate. We currently operate a single STR and are looking to invest in a single-family multi-unit and/or commercial 6-12 unit property.

If we have the opportunity and ability to "skip" the 2-4 unit step and get into commercial 5+ unit opportunities, should we do it? What are the main pros/cons of doing this?

From the research we have done so far, it appears that the commercial 5+ buildings/opportunities are more lucrative and provide much more cash flow. We would need a bigger downpayment on a larger loan obviously but other than that we are having a tough time coming up with reasons not to invest in the 5+ commercial opportunities vs the 2-4 unit.

Thanks for any help!

Nick & Amy