Lease Structures
Residential = 1-year leases, gross rents, tenant pays utilities, landlord covers maintenance. Commercial = 5–10 year leases, NNN structures where tenant pays taxes/insurance/maintenance.
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Financing Reality
Commercial loans are typically 5/25 or 7/30 — fixed 5–7 years then floating or balloon. Refinance risk is real and constant.
When to Switch
Most investors move toward commercial after 8–15 residential properties when operational complexity makes consolidation attractive.