Houses vs Commercial Properties for Rental Income vs Capital Gains? - Trace Trajano:
Don't buy houses and keep them. You've heard me right. Houses are not the way to go as far as generating cashflow, or cash that comes month in and month out whether or not you do some work for that month. Houses are good to sell - houses are capital gains play not cashflow plays. That is I've made money when I buy a house at a low price and then I sell it at a higher price.
I've bought houses but the cashflow isn't there. I've found that the real passive income comes from commercial properties - apartment buildings, retail mall, office buildings, mobile home parks, assisted living facility, etc.
However, nationwidepi says in a subsequent post:
While I agree that commercial is where the big fish swim and eat, and the profits have several more zeros behind them, this sounds more like a plug than anything.
Beginning investors don't usually jump in to large commercial deals and have success at them. This terrain is also where fish get fried!