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Updated 25 days ago, 11/30/2024
- New to Real Estate
- Mountain View, USA
- 8
- Votes |
- 14
- Posts
How to analyze NNN properties and determine FMV
Hello,
I have some experience with small multifamily, SFR and condos, especially analyzing those deals, but I am now considering NNN lease for the ability to invest in passive out of state income. I have been receiving listing from brokers offering cap rates of 3-7% in almost all 50 states, for different lease terms and guarantors.
I am trying to analyze those deals in an efficient manner - weeding many deals or brochures early on, and understanding the out of state location well.
Because the cap rates are all over the place (based on tenant, location and lease term), I struggle to understand if a property is fairly priced, as it is not easy to come up with a "general" cap rate to apply to each NOI.
Does anyone have resources (books, podcasts, blogs) that they can share that gives pointers when analyzing NNN properties? I assume it would be easier than analyzing small multifamily, as I don't have to verify expenses or income (instead I would need to pay more attention to lease and tenant), but I found it easier to get a general "cap rate for an area" when it comes to other asset classes.
Your feedback and help is greatly appreciated, thank you!