Video: Which Investment is Best?

In this Santé Realty Investments video, Jim Small talks about the hardest decision for new investors to make, “which investment is best, single family or a commercial property?” 

When it comes to investing for the first time, there are a few things worth considering when you’re deciding on either purchasing a single family home and renting it out or investing in a multi-family commercial property.

 

Jim breaks this down in the video below, but we’ll give you a recap here:

 

Single Family:

  • Buying a $100,000 home in this situation you’ve decided to purchase a home that you will then rent out to one single tenant.
  • Property damage – if the property gets damaged, the value of the property goes down.
  • You are the sole owner – you bare all the risk
  • Tenant occupancy – you either have a tenant or you don’t, this means you either have income coming in or you don’t.

 

Multi-family Commercial:

  • Put down $100,000 – as an investment on a multi-family property, making you part owner.
  • Property damageyou would bare a fraction of the risk, depending on how many other investors have gone in on the property with you.
  • You are one of many owners – you take on less risk this way.
  • Tenant occupancy – your property is continuously generating income, whether your occupancy is at 100%, 90%, or 80%.

 

Check out Jim Small’s video for a more in-depth look at what differs between a single family home and investing in a multi-family property.

 

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