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Key Differences Between Property Types When deciding between investing in commercial or residential real estate, it’s essential to understand the core distinctions between the two. Your decision can significantly impact your returns, management style, and long term financial strategy. Property Definitions Residential Properties: Include single family homes, condos, duplexes, and small multifamily properties (typically 2 to 4 units). These serve as places for individuals and families to live. Commercial Properties:

Separate Personal and Property Finances If there’s one thing to do as early as possible, it’s opening a separate business account for your rental income and expenses. It makes everything cleaner. Rent payments, repairs, deposit returns it all flows through one place. No more guessing what was personal vs. property related when tax time hits. Mixing personal spending with rental cash creates headaches you don’t need. It muddies your records,

Core Metrics That Matter When you’re sizing up an investment property, there are a few numbers you can’t afford to ignore. These three aren’t just finance terms they’re your go/no go tools. Cap Rate (Capitalization Rate) tells you how much return you’re getting annually if you bought the property in cash. It’s calculated by dividing net operating income by the purchase price. If a place brings in $20K a year