Tips for Buyers

Best Places To Invest in Real Estate: Commercial vs. Residential

By July 1, 2021 July 12th, 2021 No Comments
commercial vs. residential properties

Leverage your investment and take advantage of a hot real estate market. If you’re looking for the best places to invest in real estate, then consider commercial vs. residential properties in the Las Vegas area. Compare the benefits of these two types of investment to prepare for your next opportunity.

Advantages of Investing in Residential Real Estate

Residential property investing doesn’t mean investing in a home for yourself. The goal is to turn these properties into rental opportunities for between one and four units for single- or multi-family homes. Properties with more than four units are typically considered condos or duplexes.

Compare these advantages of residential investments with the benefits of commercial property investment:

  • More manageable down payments
  • Reduced turnover
  • Expanded pool of buyers and renters
  • Less zoning requirements
  • Safer in economic downturns

Investing in residential real estate typically requires a lower down payment than a commercial property. Home prices are typically lower than apartment buildings or commercial spaces as well.

Most renters choosing a home to rent instead of an apartment are more stable. Families and other renter demographics may be more likely to stay in the same unit, which means less turnover for your rental property.

Fix-and-flip residential properties can enjoy an expanded pool of prospective buyers. Less zoning requirements means fewer headaches as you prepare to renovate your investment property.

Benefits of Investing in Commercial Real Estate

Choose commercial vs. residential property for your next investment opportunity to see why it’s one of the best places to invest in real estate. Offices, industrial real estate, multifamily properties, retail buildings and hotels are all examples of commercial property you can invest in.

A commercial property can offer you the following benefits as an investor:

  • Triple net leases with longer terms
  • Highly trusted tenants
  • Increased returns

A triple net lease signs over more responsibility to the tenant. In many cases, they include property expenses and maintenance costs. These leases are usually longer than the traditional one-year residential lease, so you can enjoy a fairly hands-off investment opportunity.

Most commercial vs. residential tenants are already proven business owners or have financial backing to launch their business. If you’re lucky, your tenant may be a large business or corporation, which are usually even more trustworthy for on-time payments.

Unfortunately, a large percentage of small businesses fail, so commercial real estate is usually seen as an investment opportunity with higher levels of risk. You can expect increased returns on good investments to compensate you for the increased risk.

Best Places To Invest in Real Estate

There are many different factors to consider as you look for the perfect real estate investing opportunity. Location, cost, curb appeal, facilities and other factors can all help determine whether an investment will be successful or ineffective.

Prepare for Your Next Investment Opportunity

Explore the best places to invest in real estate with the help of an experienced real estate investing team. Review hidden gems and reliable opportunities in the Las Vegas area with the Anthony Knight Group. Contact us to learn more about short-term and long-term opportunities that match your investment situation.

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