Commercial vs Non Commercial (which is better)

[Quentin Mitchell]

Commercial pro's

1. Financing is based on more on the asset than the credit

2. It can force appreciation easier by doing renovations and increasing rent.

3. More income potential

4. Multiple commercial properties can get you financially free quicker.

Commercial Con's

1. Harder to analyze for the less seasoned investor.

2. Harder to manage for the less seasoned investor due to more tenants.

3. Harder to come up with the cash to put down.

4. Harder to find deals without the right network of people.

Non-Commercial Pro's

1. Easier entry price.

2. Easier to manage for the beginning investor.

3. It can be done with limited knowledge.

4. Depending on what you buy, the first deal or 2 will not kill you.

Non-Commercial Con's

1. Harder to scale.

2. A lot of competition.

3. Harder to force appreciation.

4. So many options from flipping, buy and hold, lease options. It could be hard to focus because of so many options. 

[John Casmon]

Commercial. Why? Outside of the higher profit potential, the solutions for the commercial cons are basically all "networking" related. The solutions for the non-commercial are systems and execution related which is more difficult to perfect, especially since margins are too slim to bring in multiple experts.