Commercial or Residential?

[Nick Meland]

Hi everyone,

I’ve been reading about the pros and cons with residential versus commercial real estate. I think the pros to residential are a lower barriers to entry, more inventory, beginner friendly, and have the ability to house hack. The pros for commercial are the high scalability with more cash flow potential. The cons to each are the scalability of residential and high barriers to entry for commercial. 

I’ve had no experience so far in terms of buying either. I have the drive, some knowledge, and just need some more capital. My girlfriend and I have money saved up for a house hack however I’m just trying to understand and explore any other ways that might be better. 

I recently listened to the BiggerPockets podcasts about the benefits of commercial real estate and how scalable it is. Any advice from commercial real estate folks and how I can get my foot in the door? 

Thanks!

[Taylor L.]

House hack is a great way to get started, but it's not mandatory. I started investing in apartments before I bought a personal residence. Buying commercial investment real estate is a different beast from doing a house hack. Commercial is going to be more work to get started, but you can do it.