Couple of questions from a beginning investor

Is there a commercial equivalent to "finding out how much you can afford" or is this less important since the financing is based more on the income that the property will generate?

Can residential equity be used as part of a commercial down payment?

Is good credit and residential equity enough to get into something commercial (or is it a pipe dream)?

Is residential investing a good training ground for someone who eventually wants to do commercial investing or are the two so different it would be a waste of time?

Any input would be appreciated. Thanks.

"Is there a commercial equivalent to "finding out how much you can afford" or is this less important since the financing is based more on the income that the property will generate?"
Financing is more a function of the cash flow generated by the property and the amount of down payment you can provide.

"Can residential equity be used as part of a commercial down payment? "
Nothing beats cash… If you can take the equity out with a 2nd mortgage, it would preferably than having some kind of pool of properties.

"Is good credit and residential equity enough to get into something commercial (or is it a pipe dream)? "
Take the money out and put it into the property and that would be a better sell.

"Is residential investing a good training ground for someone who eventually wants to do commercial investing or are the two so different it would be a waste of time? "
What is the difference?

I am just goin to add to admin comments;

"Is there a commercial equivalent to "finding out how much you can afford" or is this less important since the financing is based more on the income that the property will generate?"
It depends on the type of property. Owner occupied vs Strict Rental. Every Commercial lender has their own underwriting methodology and the analysis of a property differs by program. Some programs will take in to account only the property, others will also take in to account the borrowers income. Best bet is to deal with a knowledgeable broker that knows his/her lender programs.

"Can residential equity be used as part of a commercial down payment? "
Admin is right on this. Most commercial financing is deal specific. Other assets (Unless they are being liened) have no effect on the deal. Bottom line; bring a certified check to account for your interest.

"Is good credit and residential equity enough to get into something commercial (or is it a pipe dream)? "
Good credit is absolutely necessary for high ltv financing. Especially with the rate rising you would be advised to better your credit for better terms, if not LTV.

"Is residential investing a good training ground for someone who eventually wants to do commercial investing or are the two so different it would be a waste of time? "
Most small commercial stuff $150K-$300K is relatively simple open and shut cases. You know the price, taxes, rent (and NOI) etc. When you get in to large commercial you have to know what you are doing or be able to work with/hire people from the business or you may risk running in to trouble.

hope that helped!