One of the most common ways I have seen investors invest in real estate is to purchase and operate one or more single family houses as rentals. It’s a logical approach for many investors as it’s a process they understand, having purchased their own home. In addition, owning a second home can be attractive as the purchaser has likely witnessed the equity in their home grow over time.
However, for investors seeking a more diversified and balanced approach to real estate investing, they may be better off rethinking this strategy and, instead, opting to build a portfolio of passive commercial real estate investments.
