What are your thoughts on Triple Net vs Multi-Family

[Matthew G.]

It seems like a majority on this forum prefer multi-family rentals. From speaking with many previous landlords at meetups, they eventually hated managing it or paying steep prices for property managers. Some became private lenders and others preferred triple net commercial leases. What are your thoughts on multi-family vs triple net leases for cashflow?

[Mary M.]

The allure of MF is that you have a lot less exposure to major risk. You have lots of tenants so if one moves not a big deal  

While it may seem like it would never happen, how do you think the folks that own the NNN leases for Sears or Toys R us or every other business that is now defunct are doing? It will take years to fill those spaces

While renting an apartment is easy, renting out commercial space is not. So really its all about how much risk you can tolerate. 

For example:  I owned a sweet little 3ksq ft building in the hottest neighboorhood in SF. I could of easily rented it for 15-20k/mo. But what would i do if the tenant went belly up?  It would be months of no rent.  So i chose to diversify my risk and traded into MF :) 

Also, if you self manage MF it is not passive income - which can be important. While afaik, NNN Is always passive (nothing to manage) so these are tax questions that should be discussed with your cpa.