Commercial or Residential property for rental income

[Semilore Lawal]

I would like to know, is it more profitable to invest in commercial or residential property for rental income. And what is the reason for whatever the answer is? 

[Semilore Lawal]

Thanks so much for the insight!

Originally posted by @Kenny Dahill:

@Semilore Lawal, you're going to hate this response: it depends.

Each has their own unique pro's and con's.  The biggest financial advantage to commercial is the ability to reposition an asset and 'force appreciation'.  You raise the rents, boom, value of asset has increased.

Commercial is more challenging to get into.  Banker's want to know you know your stuff with commercial buildings and won't fail.  The assets generally cost more.

Residential is easier to get into.  Doesn't require as much experience.  Plus, you can get tax benefits from capital gains if you lived in it as your primary for 2 of the last 5 years.