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Results (10,000+)
Tove Fox Residential vs. Commercial Real Estate Investing?
5 January 2025 | 13 replies
@Tove Fox - Residential Real Estate InvestingPros: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 InvestingPros: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.
Kevin Robert Highgate New to Bigger pockets - New to Investing
1 January 2025 | 3 replies
This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.
Aidan Williams Cleaner Making More than Property Manager
28 December 2024 | 12 replies
That said it is possible that you need to evaluate your stays and decide if it is worth taking shorter stays or sticking to some longer stays to reduce your time commitment and maximize the revenue for time invested.
Jonathan Greene How to Diversify Your House Hack to Recoup More Cash Flow
30 December 2024 | 4 replies
Unit 4 - short-term rental (this would be best for a unit with a separate entrance so you reduce the bother to other tenants because the changeovers will be more here)Is anyone doing all three (LTR, MTR, STR) in their multi or house hack now?
Rene Hosman Have you tried tools that report your tenants rent to credit bureaus?
20 December 2024 | 12 replies
If there were a bulk subscription I could get all my tenants for a low annual or monthly cost I would consider it though
Greg Barber Need to buy more rentals! How to finance them?
26 December 2024 | 3 replies
Remember that the leveraged purchases are not going to add significant cash flow immediately and borrowing against existing properties will also reduce their cash flow.
Roy Gottesdiener Pulling out equity will kill my cash flow but I want to grow my portfolio
31 December 2024 | 9 replies
I'd also suggest considering a partnership if you feel comfortable with that in order to reduce the risk completely on you. 
Sebastian Albors New and Looking to Make First Real Estate Purchase
25 December 2024 | 8 replies
House hacking with an SFDU could be a smart first step since it allows you to reduce your housing costs while building equity.
John Marchefka Rehabbing land INSTEAD of houses??
10 January 2025 | 13 replies
And all of this happens during the contract period reducing purchasing risk.Great strategy especially when practiced just on the outskirts of a major metro area in a country setting(a weekend getaway property that can be marketed to city folk).  
Luka Jozic Experience of OOS investing in Cleveland after 1.5 years.
29 January 2025 | 107 replies
Also, just because you will be renting to S8 tenant does not reduce risk.....yes the tenant may be on a voucher and it will cover 70% at the least of the rent but the tenant quality will be low.