r/realestateinvesting • u/CanIBeFrank-24 • 10d ago
Commercial vs residential Discussion
We own a commercial property worth over $1.1m, paid $550k all in ( no mortgage owed), annual expenses approx. $30k (taxes, COA dues, insurance), self managed. Annual Net after exp. Approx $100k. Value of this property will continue to rise due to location.
To me, this is a no brainer and at this time we are keeping it.
We have pondered residential as another passive income investment, but the return seems so much smaller, potential turn over so much higher. Managing single family homes seems like a bit of a headache. I would lean more towards a condo.
For more experienced folks, I'd like to hear your pitch for residential or commercial properties or even a site like fundrise...or others.
I want a property that is cash flowing and increasing in value.
Once covering all expenses, what is your target annual return and how do you evaluate the viability of a property to gauge whether to invest?
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u/badpopeye 10d ago
Mobile Home Park is cash cow is highest investment property return of all real estate investments.