When considering to invest in real estate, you have to ask yourself: do I want to invest in commercial real estate or residential real estate?

Both commercial and residential real estate have their ups and their downs, it’s just about figuring out which one is more appealing for your situation. As far as timing, commercial real estate may be more time consuming in your search for a tenant. Residential real estate is a more stable market and easier to find a tenant for in the long run. If you have the time and really want to focus on growth rather than stability, commercial real estate offers significant room for growth because of the fact that commercial leases tend to run longer than residential leases.

Now, something that you need to consider is how both investments are valued. Residential properties are way easier to value than commercial properties and also allow for relative comparison. Comparing houses in the real estate market is not a difficult task, whereas comparing commercial properties is. Commercial properties are difficult to value, so if you’re looking to make a specific investment to reach an exact future value, consider this. If you’re looking to make a large investment that you know will pay off, definitely consider investing in commercial real estate.