Max out fourplexes before commercial?

[Au Jia]

Hi friends,

There is a question that I have been searching for an answer for a while.

Should I max out the fourplexes (up to 10, residential) vs, going “big” by purchasing a 10 unit+ property (commercial)?

I know it’s a deal by deal analysis but I hope to get a general direction. My goal is to have a fund if possible to invest in real estate.

Maybe helpful to think in a framework.

- Cash flow % (commercial higher)

- Appreciation potential (commercial lower)

- Expenses (usually more unit, more efficient)

- Loan complications (how much more complex will commercial loan be?)

- Total return (which is higher?)

Thanks a lot! Appreciate any thoughts.