Have any of you tried buying some commercial spaces and rented them out to companies? What are the risks? What methods do you use to choose your tenants? Is it more profitable than buying an apartment and renting it out? How many months of rent do you ask for in advance?
I highly recommend using a commercial REIT instead of individual investments. It won't be as profitable but everything will be done professionally and you will get a more diversified investment.
Commercial real estate in a good location can be very profitable. Thoroughly check out any prospective tenants ahead of time and choose them wisely. Get first and last month's rent and a little extra up front in case you get stiffed on anything else like utilities or property damage. The biggest risk if you choose your tenants carefully will be vacancy risk - not finding enough tenants to rent from you. This is most likely to happen in bad times and in locations that aren't so great.
Buying commercial can be quite risky at times. It is dangerous when you think you are going to make a lot of profit and then you end up with nothing.
