Although I’m just getting started, luckily I've being able to invest in 2 mutli-family properties in New Jersey, it was a lot of work but I really enjoyed it.

Hey Zach, lots of reasons: 1) Local Expertise: For instance, My primary states are Hawaii and Washington.

Basically, all the things to do on the US side are best enjoyed in warmer months.

Some states may be more enjoyable than others when it comes to running a PM company.

I am currently enjoying my 1k monthly income with no debt, and I am nervous about leveraging.  

OK I do have a little expertise in CA on these issues..

@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.

A tenant now enjoys these enhancements at $1400/month, showcasing the property’s increased value.

Their view is that an arcade game is cool for 10 minutes, but a PS5 is something that they would enjoy for their entire stay. 

I lost money for many years in real estate, while my friends were enjoying life with their savings.