NNN Dentist Office

[Brad Johnson]

Anyone have any experience investing in single tenant NNN medical offices (ex. Dental Office) and pros/cons vs buying a similarly priced 4-6 unit multifamily property. Assuming CAP rate is identical and neither properties require any renovations.

Thank you in advance to any responses.

[John McKee]

pros on the dentist office is that it is likely a long term lease, less maintenance, and a more stable tenant.  the con is your rent is locked in and there is no value add.

Multifamily has more headache with turnover on tenants as well as maintenance.  The pro would be that you have more flexibility to raise the rents as the units turn over.

I would only buy the Multifamily if there were some upside to increasing the value of the property, otherwise I would stick with the passive cash flow of the dental office.