Commercial properties typically offer higher cash flow and returns than residential properties, but they also come with higher initial investment requirements.
Residential properties are generally easier to finance with more favorable loan terms, lower down payments, and lower interest rates compared to commercial properties.
Lease terms differ significantly - residential leases typically run 6-12 months, while commercial leases often span 3-10 years, providing more stable income but less flexibility.
Commercial properties face different vacancy risks - finding new tenants can take longer, but tenant turnover is generally less frequent than with residential properties.
Management complexity varies greatly - residential properties typically require more frequent but simpler maintenance, while commercial properties need specialized maintenance but less frequent tenant interactions.
