
Residential: Single-family homes, condos, duplexes, small multifamily (2–4 units). Most accessible entry point for investors.
Commercial:
Office — Class A (premium), Class B (moderate), Class C (value)
Retail — strip malls, shopping centers, standalone stores
Industrial — warehouses, distribution centers, manufacturing
Multifamily (5+ units) — apartment buildings; financed as commercial
Hotel/hospitality
Mixed-use — combination of uses in one building
REITs (Real Estate Investment Trusts):
Companies that own income-producing real estate
Traded on stock exchanges — liquid, unlike direct ownership
Must distribute 90%+ of taxable income as dividends
Allows small investors to own fractional interest in large commercial properties
Cap Rate (Capitalization Rate):
NOI ÷ Property Value = Cap Rate
Higher cap rate = higher yield but typically higher risk
Used to compare investment properties
Reference:
TaskLoco™ — The Sticky Note GOAT