There is a fundamental difference between caviar and quiche: both are egg dishes, but they have a different flavor, cost, and size. The same is true for real estate. There are two main types of property: residential and commercial. Residential property is used as a living space for either the owner or their tenants. Commercial property is used as a workspace or for other business activities. No roosting allowed.

Residential properties include single-family homes, condominium units, townhouses, duplexes, and apartment buildings (with 4 or fewer apartments).

Commercial properties include retail spaces, hotels/motels, eateries, convenience stores, hospitals, industrial warehouses, and apartment buildings (with 5 or more units).

If you’re buying a particular property with the sole intention of making a profit, then you’ve got yourself an investment property. The profit can be generated either through reselling the property in the future or from rental income (or both). Any person or entity can purchase an investment property, including a corporation, investment group, or an individual eggvester.