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If you are new to the buying and selling of investment properties, you should opt to get involved with residential properties first. A lot of people already have a keen knowledge about residential properties as opposed to commercial properties. If you opt to buy commercial properties to start off, you may not know what to look for or what you need to be apparent of. When you find yourself getting involved with commercial real estate, regardless if its retail or office spaces, each investment venture comes with its own set of complications and specific guidelines that must adhered to. Residential properties such as apartments, homes, duplexes, town houses and things of that nature have a less complex set of rules that you have to follow in order to purchase them.

Remember that when you opt to invest in residential properties, you will have to deal with tenants. A lot of people that invest in residential properties do so, so they can rent them out to people. It will be your obligation to ensure that the property that you purchase is properly maintained.

The key to dealing with residential property, you want to have a low vacancy rate with your properties. Generally, you will not have to worry about the vacancy rate unless you have your rent amounts set too high or the property is unappealing to potential tenants.

As the property owner of the residential property, you are responsible for the maintenance and upkeep that will eat into your profits. Keep these facts in mind if you want to invest in this type of real estate for a long-term investment. The options for financing residential real estate are better than commercial property. The financial institutions generally only lend about 70% on commercial properties but on residential properties, you can have up to 90% for the loans. This makes obtaining residential real estate easier than commercial real estate.

The biggest disadvantage of residential real estate is the maintenance and upkeep of the property as well as the other expenses associated with the property. To reduce the costs for maintenance, most investors will do the maintenance tasks themselves. This can be a complicated issue if you have a large portfolio of residential properties.

It is wise to remember that investing in any type of property requires work and can be a full time job yet the long-term gains are great.

Learn more about property investment and finding your first investment property.