What’s the Difference Between Residential and Commercial Real Estate Investing?

Residential investing focuses on properties for individuals or families to live in, like single-family homes or duplexes. Commercial investing involves properties used for business, such as office buildings, retail centers, or apartment complexes with five or more units.

In my experience, residential investments tend to be easier for beginners, offering simpler financing and more stable demand. Commercial properties, while more complex, can deliver higher returns and diversification. The choice comes down to experience, risk tolerance, and desired involvement. Both can build wealth — but they require very different skill sets.