When becoming a real estate investor, one of the biggest decisions that you have to make is what type of real estate you are going to be investing in. Obviously you need to choose an area, but the difference between residential and commercial will put you in a whole different ball game, depending upon what you choose. There are pros and cons to each. Here’s a list outline below:

Residential:

-Typically less expensive

-Easier for new/first time investors

– More diversity

-Faster sales cycles

Commercial:

-Harder to enter

-More corporate environment

-5 or more consecutive units counts as commercial

-Larger markets