The commercial market is really taking a beating now...just driving around the county you will see a ton of "available" and for sale signs on commercial properties. I think it would be a wash....selling your home low to buy a commercial property low...sounds solid to me.

Joey, There are properties selling at higher caps and we will see cap rates go double digit on some properties. I think 6 cap in this market is overpriced. Tenant mixes are going to undergo a very difficult transition as the mom and pops that used to fill out centers continue to diminish. The loss of our mom and pops are unrelated to the recession but more that business models are changing.

I'd look at industrial before retail.

Hello Joey,

The observation you make is accurate. I assume the SFR house is not a personal residence or second/vacation home. The investment property can be exchanged for a "like-kind" property, including commercial property, industrial, shopping center, vacant land, multi-family residential, etc. There is a plethora of additional reasons why one might consider an IRS Tax-deferred exchange: Increase cash flow, Eliminate property management headaches, Defer capital gains, Reduce liability and exposure to lawsuits, Geographic diversification and Participate in renewed depreciation potential.

As with residential, due-diligence is paramount to success... There a several opportunities available locally for commercial investment. I would be happy to sit down with you and my commercial-licensed team member to explore these alternatives. Good luck in solving your investment property challenges!