Commercial vs. Residential Real Estate: Which Is Better?

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When looking at real estate investing, there’s often a question of whether to go with residential or commercial. It depends on your investment goals and risk tolerance.

There are several ways to approach real estate. It encompasses different types of properties. But with today’s high interest rates, you want to invest wisely.

What Is Considered Residential Real Estate?

Any complex that consists of one to four units and where someone can live is considered residential real estate. That includes:

• single-family homes
• duplexes
• condominiums
• triplexes
• quadplexes

This could also include building lots and land intended for a home’s construction.

Residential Real Estate Entry Level

Residential real estate often has a lower barrier to entry. Residential can be an inexpensive investment. It’s all about supply and demand, and if there is an abundance of properties on the market, it can be one of the more affordable forms of real estate.