I prefer residential real estate over commercial real estate. The reason being that whether the economy is doing well or not, people have to live somewhere. During a recession the business leasing your property may go out of business or simply not renew the lease after the term. I’ve often seen commercial properties with FOR LEASE signs up for years before another business comes in. The exception here are apartment buildings which technically fall under the commercial properties. But even then I would only invest in those offering affordable housing.