Commercial Property Investment to generate income

[Norman Ashworth]

Hi,
My wife and I will be relocating to another area of the country and I was looking into commercial property as an income until I get my business up and running. It could be 6-12 months before we have a reasonably steady income, so, I was looking at Commercial Properties, which had a net 9-13% starting point before negotiating. Looking at medical buildings & medical offices but those have a much less starting cap.
I would put enough $$ down so when the lease expires the building would be paid for. If that means 40-50% down that would be doable.
Leases would be written as NNN type and background checks as well. CPI increases, other

I have a five to seven year time frame
what do I need due dilligence on?
normana61

I have a broker, real estate attorney

[Norman Ashworth]

Thanks guys, appreciate the advice. You are right, medical buildings are not in that cap range unless they have less than 2 years remaining. I have called on some of them asking the realtor if the client is looking to stay and I have found about a 50-50 split.

My goal is to have leases extended to 5-7 or more years, that way I can take an income and when the properties lease is over the building is paid in full. I can then re-lease them or sell, whatever our life situtations looks like at that time.