As a commercial real estate professional, I specialize in different types of investment properties. Some of the investment properties we handle in our firm include income producing commercial property and residential property with two or more units.

There are generally two types of investors we work with. The first type is the end-user who is an investor that uses all or part of the property for his/her own use. The other units would be leased to reduce the annual debt service. Typically, we find that an end user will pay more than other types of buyers for a particular property because an end-user is not looking solely at the return on the investment.

The other type of buyer we work is an investor who is strictly a landlord. There buyers are solely looking at the income the property produces and the return on the investment.

When it comes to financing these properties, lending institutions evaluate each type of buyer differently. Depending on the buyer’s personal situation, lending institutions may require larger down payments as well as higher interest rates. One of the benefits of buying a dwelling of four or less units is that some lenders will allow a thirty year mortgage. This means, smaller monthly payments resulting in a higher cash flow and usually a higher return on the initial investment.

When searching for the right type of investment, we recommend that you work with a qualified real estate specialist that can help you determine your specific needs and accomplish your investment goals.

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