The differences between residential and commercial real estate are in some ways obvious and in some ways not. Residential real estate investment usually involves the purchase, sale, flipping or rental of residential properties. Commercial real estate investment may involve purchase and sale of commercial real estate, and it may also involve the rental of commercial real estate to business tenants. Some major differences include:
- Residential real estate investment often requires less money to get started.
- Commercial real estate is often more dependent upon a good economy to be lucrative.
- Commercial real estate can involve bigger returns.
Within the commercial and residential real estate categories, there are different types of…