OFFICE SPACE vs. Residental rental units


I have been educating myself on all aspects of RE and have discovered that investing in commercial re holds the most interest for me.

As I investigated further, investing in Office space used for a “specific business use” vs. multi-family housing has further sparked my interest.

If anyone could be so helpful, what are the differences form a Benefit/Cost ratio. So far, I have found the advantages to owning office space to be the following:

  1. Longer lease terms
  2. less lanlord involvement on maintance and improvements
  3. dealing with educated business people

Any other advantages/disadvantages??? Please do tell…



Hello, I work with many commercial investors. Their interest with commercial is the value of the types of properties that they purchase. They have also mentioned the amount of profit that is to be made. One other thing, lenders like to fund projects with value, especially million dollar projects. I hope this helps.

I have been looking at commercial real estate for elder care homes or elder Day care Centers in California.

These businesses are stating that they have a $600,000 cash flow. The cost of the one I am looking at is $2,750,000, they have california certification, some of them don’t own the property, I would only be interested in those that own the property which would make the cost go up by another 1,000,000 (approximately).

The business is medicare reimbursable with 110-clients

The only one I can find is in the Los Angeles area / client is in Sacramento The principals own a day care center and lthe other partner is a loan officer,

the business has staff in place, etc. Does this look like something your company would be interested in funding? what would be the particulars, interms of amount of money down, etc.?

Gina, have been in the medical field for over 36 years and have been funded in part by Medicare. If your business is totally dependent on medicare funding, beware. They will change the rules on anything once they discover people are making money with the program. Ask anyone who is with DME’s, homecare, rehab, etc. There are people who were making a good living one year, Medicare changes their reinbursement, and they are broke the next year. Medicare ALWAYS changes its reimbursement to lower and lower values and I am expecting that they will become more stringent and more stingy as old farts like me start clogging up the system. Beware.

Thank you for the information.