Real estate can be a great way to generate income and build wealth. It’s a tangible asset that tends to appreciate over time, making it a potentially powerful tool for diversifying your investment portfolio.
But there are two very different worlds within the real estate market: residential and commercial. Commercial properties are those used for business, such as office buildings, retail spaces, and warehouses. Residential properties, on the other hand, are used for personal living, including single-family homes, apartments, and condos.
So, what are the key differences between investing in residential versus commercial real estate? This guide will walk you through a detailed comparison, covering everything from financing and management to the unique risks associated with each type of property. By the end, you’ll have a clearer understanding of which path might be right for you.
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