Looking to invest in commercial real estate, but don't know which property type to consider? Here's a comprehensive guide on the five most common types of commercial properties.
1) Multifamily (Apartment Buildings) – Multifamily refers to apartment buildings of all sizes. It is categorized into garden apartments, walk-up apartments, mid-rise apartments, high-rise apartments, and special-purpose housing.
Garden apartments are low-rise apartments with typically less than 3 stories, built in a garden-like setting. Walk-up apartments are 4-6 story apartments without an elevator. Mid-rise apartments are 4-8 story apartments with an elevator. High-rise are 9+ stories with at least one elevator. Special-purpose housing is a multifamily property that targets a population segment, which includes student housing, senior housing, subsidized housing, etc.
Pros of Multifamily Properties:
• Easy to get into with smaller properties and slowly transition to larger properties
• Tax benefits
• Use rents in place for financing
Cons of Multifamily … Read More