Passive income is a subject that is often thought or talked about in commercial real estate. The passive income is the income from rental activity, with limited business interests or other activities in which the investor does not materially participate. In other words, this is what apartment investing is all about. It requires buying a commercial real estate property and getting it to the point where it takes none of your funds to run or to pay any of its expenses.

Instead of laying out additional money for the building, you are gaining a steady profit from it. It can be done easily with apartment building investing, multi-family properties and even with single-family houses. But, it will take more years to gain passive income from single family homes than it will from apartment investing or multi-family properties. This is because with these types of dwellings you have more total rental units, with your tenants paying the expenses from the start. Single-family houses are dependant on the house being rented. If the house is without a tenant, there is no income from this property and it may take longer until it is paid off. This means it will be longer before you have the deed in hand and a passive income.

Multi-family properties are the fastest way to have passive income in your portfolio, with the exception of a large apartment building. With these properties there are enough tenants that if one unit is empty, it is not going to affect the profit from the apartment investing. Nor will there come a time when you will need to place any of your income into this property, as there will be enough tenant-generated income to pay for any expenses.

This passive income is why apartment investing and commercial real estate and multi-family properties is so coveted. These properties have little more in the way of upkeep than do single family houses, but there will be higher profits. With more units to rent, any upkeep can come from the tenants rent, and still you will still have a steady income.

Passive income will do much for your portfolio, which you will need when it is time to do more apartment investing or to buy multi-family properties. Banks will look at you more favorably with a strong portfolio. There are also different tax breaks that will be available to you. There are many more incentives when you have passive income from commercial real estate, leading to more properties that will bring in still more passive income.