All Forum Posts by: Amit Chugh

@Tim Delaney - I was referring that one of the properties is listed as Section 8 Property, why one would list that in title, does it make any different or benefit for buyer or seller mentioning section 8 in title? Below is the link of the property:

https://www.loopnet.com/Listing/927-Dixon-St-Tiptonville-TN/...

@Ken M. - Why you think commercial will head for huge retrenching?

@Tove Fox - 

Residential Real Estate Investing

Pros:

• Lower Entry Costs: Easier to get started with less capital required.
• High Demand: People always need homes, making demand relatively stable.
• Easier Financing: Mortgages are generally easier to secure with favorable terms.
• Simplicity: Easier to understand and manage, especially for beginners.
• Flexibility: You can use it as a personal residence or rent it out.

Cons:

• Tenant Turnover: More frequent turnover leads to vacancy and more management.
• Lower Cash Flow: Income potential can be modest compared to commercial properties.
• Emotional Buyers: Residential prices can be influenced by emotions, leading to price volatility.
• Maintenance Burden: Landlords often deal with repairs and maintenance, which can be time-consuming.

Commercial Real Estate Investing

Pros:

• Higher Income Potential: Stronger cash flow and higher returns are common.
• Long-Term Leases: Tenants often sign longer leases (3-10 years), reducing vacancy risk.
• Professional Tenants: Business tenants tend to take better care of the property.
• Valuation Based on Income: Prices are based on the income the property generates, not market emotions.
• Shared Costs: Tenants often cover property expenses like taxes, insurance, and maintenance (via triple-net leases).

Cons:

• High Entry Costs: Requires more capital or partnerships to get started.
• Complex Management: More expertise is needed; you may need a professional property manager.
• Economic Sensitivity: Commercial properties are more sensitive to economic conditions.
• Challenging Financing: Securing financing can be harder, with stricter terms and higher interest rates.
• Zoning and Legalities: More complex regulations compared to residential properties.

Key Differences:

• Risk: Residential tends to be lower risk, while commercial offers higher rewards but with greater risk.
• Management: Residential is easier for DIY investors, while commercial properties usually require a team.
• Scalability: Commercial properties are easier to scale, offering more potential for significant cash flow increases.

While searching for apartments, i noticed a commercial apartment listed as Section 8 property, does it make any difference from buyer/seller perspective when it's listed as section 8 property. Same property listed water bill paid by landlord so how much does it cost to put individual meters for each property so cost can be moved to tenants?

I am interested to buy commercial multifamily apartments 4+ units and would love to connect with other members of the community who are based on in TN to build a team. I was thinking to explore TN and Georgia. What's the best way to find deals beside LoopNet?

And would appreciate any tips in thoughts in same area.