When David Switzer first decided he wanted to buy rental properties, he did what a lot of new investors do. He started attending local real estate meetups. But he quickly noticed a problem. Everyone seemed to be looking for the same types of properties, running the same numbers, and struggling to find deals that actually worked.
That led David in a completely different direction.
Near his home, he came across a small commercial condo for sale. It wasn’t a huge office building or shopping center. In fact, the property cost a fraction of what he would have paid for a single family rental. David realized there was a side of commercial real estate that most small investors weren’t even looking at.
On this episode, David shares the pros and cons of owning small commercial properties and how the numbers compare with residential rentals. We talk about how he finds deals, how he screens businesses before renting to them, financing commercial properties, who is responsible for repairs, and some of the strategies that haven’t worked for him.
David also shares the problems he has run into along the way and what he has learned from investing in a part of the real estate market that gets far less attention than traditional residential rentals.
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