3 Differences Between Buying Commercial and Residential Property in Birmingham

Along with industrial, business or retail uses or apartment complexes, residential properties with more than five units are also commercial properties. Single-family homes, multi-family properties of up to four units and mobile homes are all considered residential properties. Both commercial and residential real estate investment opportunities serve to reach similar goals, with some very significant differences. 

Be it a residential or commercial investment, you should keep in mind that the success or failure of a property to produce the highest possible returns on your investment dollar will hinge on your property management skills. Zeroing in on the right location and the right sector of real estate can bring great reward, with a thorough understanding of the long and short-term potential and performing your due diligence. So read on as we explore three differences between buying commercial and residential property in Birmingham.

Affordability 

Commercial property investments involve transactions requiring research and time, an intimate knowledge of the local market, higher reserves, and a large down, typically carrying a high price to purchase and manage. One of the most significant differences between buying commercial and residential property in Birmingham is that residential property is much more affordable to most investors. You should also note that appreciation doesn’t apply to commercial real estate. Instead, income determines the value. Professional buyers like those at Rent-To-Own Alabama can help you assess your budget and find a great deal, to help you earn the most potential return on the investment, guiding you step by step as you learn the ropes.

Risk

Another of the differences between buying commercial and residential property in Birmingham

is that overall. At the same time, different business sectors may go through upheavals. When you want to exit an investment in residential real estate, you can gauge the average days on the market to sell; everyone needs residential real estate. However, the average days on the market for commercial property are challenging to determine, given the smaller buyer pool. Professional buyers like those at Rent-To-Own Alabama can help you target the real estate sector best suited to your comfort level with the risks.

Return

Because the purchasing process is less complicated, it is also easier for Birmingham investors to learn how to make and manage their residential investments. The ease with which you can target potential tenants is one of the main differences between buying commercial and residential property in Birmingham. Professional buyers like those at Rent-To-Own Alabama can help you lay out all the numbers for each to help you make an educated decision for yourself about your next investment property. Don’t let your first investment be your last by making errors that could have been avoided by working with the best professional buyers in Birmingham at Rent-To-Own Alabama. 

The professional buyers at Rent-To-Own Alabama are happy to walk you through the differences between buying commercial and residential property in Birmingham. You see, at Rent-To-Own Alabama, the professional buyers are investors who built a career in the local market, becoming professionals to assist investors like you. At Rent-To-Own Alabama, we’re proud of our work helping our neighbors build a secure income for retirement and helping improve properties and the Birmingham community. Talk to one of the pros at Rent-To-Own Alabama about any questions or concerns you may have, with no obligation. When you work with professional buyers at Rent-To-Own Alabama, you won’t pay commissions; your success is our success. You can rely on the professional buyers at Rent-To-Own Alabama and their full-service in-house team to help locate your next investment. And don’t forget to ask about our current inventory of the best investment properties available in Birmingham. Call Rent-To-Own Alabama at 2058082682.

Looking For Local Rent To Own Homes?

Join our FREE local rent to own homes list below.

START HERE: Birmingham Rent To Own Home List

To see available local rent to own and lease purchase homes enter your info below to get started!
  • This field is for validation purposes and should be left unchanged.

Call Us!
2058082682