The C- or D areas when economy goes down can turn into F areas really quick and you can be upside down on a property.With a 7 cap in a good area with rent growth you might can eventually blend the cap rate up to an 8 if you find ways to cut costs,challenge property taxes if high, etc.  

You do not get reimbursed by tenants with expenses with multifamily like you do with NNN.The 6 cap NNN I would have to look at the dirt location, what rent per sq ft they are starting at, and early termination clauses in primary lease term, the blended cap rate over time with rental increases etc.All I do day in and out is NNN commercial retail across the country for clients.

You want to "blend in" into that area, meaning you're not luxury condo in a C class neighborhood.

Short answer: find a blending of both, while RE is has less liquidity it is much easier to encumber for lines of credit, etc, while maintaining your ownership, tax benefits, and income potentials.

Look for the blend rate over a 12 month span.

Pot growers will go into family neighborhoods to blend in.

Wheatie explained to me about them bundleing up groups of 100+ or so loans and blending the rate/spred on all of them as a package deal for investors/banks I didnt understand that they could do that because when loans are done they have to meet guidlines and how could so many people be in this situation,there must have been more risky loans than not so risky i would hate to have my good loan in with all of them riskyer loans but i still think that there is an angle some where maybe some banks and lenders will merge together to straigthen the situation and have most loans underwriten at one location or go thru a loan review so that they can get back on track the banks need more supervision these are big assets were talking about this kind of thing probably wont happen for a long time to come after this is in the past in 2009 or 2010 or so many people will need to come in with closing costs to refi if they want to save there homes cant they just raise the value to absorb this or is it that sombody has to lose i guess thats life hopefully many have learned from this if they realy wont this to end then they should educate the young people so that they dont get into a situation like this but they wont by the time they buy this will have already past,mortgages take along time to pay off for the average joe and people keep homes for a long time so its hard to avoid times like these if you own for along time eventualy your going to refi and you dont know if this will happen to you at that time my advice to them is dont put to much money into the house home improvment etc and keep your reserves in case you have to bail out that means no spending of any kind what a way to live a life it sounds like a constant struggel to save and never realy nowing if its goin to happen to you at the last moment if values drop good topic and thanks everyone.

A house hack is not a pure investment property - it is a blend of that which is an investment with that which is a home.Now - in case this point gets lost in all of the nonsense, the component that is of most prominence is THIS IS A HOME.

I like to see every year increase or every 3 years so the yield happens faster ESPECIALLY if you are buying at lower cap and blending the cap rate number higher over the primary term of the lease.The lease will spell out option periods already after primary term.

Some contracts aren't standardized, like a lease-option, I've seen such contracts that are written with a flare of legalize, copied from other contracts blended with some strategy and the contract doesn't even use complete sentences.