Its short term, the annualized returns can be well into the teens, and you have the safety of a low LTV secured by a 1st trust deed on a local property.

Yes Tony a TRUE Triple Net the landlord will not pay those costs.Lately net lease companies especially credit rated tenants have been more demanding in trying to get the landlord to cover some costs.It is very important to look at the length of the lease and terms and escalations.With inflation if the rent increases every 5 years is marginal and they want you to take care of certain items with the property it can drastically reduce your returns.It's all about what returns you are seeking versus the security and consistency of the payment.Generally triple net will hover around the 6 to 9 CAP range but will not approach the teens in most situations.For those kind of returns you have to usually chase after value add deals but they are much more work than mail box money from a credit tenant.Credit tenants have risk which is why you also research heavily the health of the tenant today you are acquiring the lease and their growth plans for the future along with reserves.

The deal may not be as sexy though.

Not as sexy as SFH, but much less competition in my niche.

Shawn, I am not tryin to rain on your parade, but that does not seem sexy to me.

I think its fair to get low teens if you have to do rehab work.

I know it might be hard to find deals with cap rates in the high teens but I dont even get interested in income property till the cap rate hits about 20%.

Getting my realtor's license is teaching me a lot of un-sexy details related to real estate transactions.

That's when it gets sexy and starts to motivate you.

Is the expected IRR at least in the low teens?