@Rud SevCap rates in NNN deals are influenced by factors like tenant quality, lease terms, location, and lease structure.

Like many businesses, the flipping niche has 3 categories that differentiate one flipper from another: quality, faster, cheaper.

Great quality for the same price as HD and Lowes particle board cabinets.

All said, drop the rate to market or slightly below (if you're in a tougher market) to attract a quality tenant, then pursue the refinance or sale as some have suggested already.

Of course, if you are doing a lot of buying and selling, it is always good to know who the players are because there are some that do top quality work and others that do not.

It really depends on location, quality of home features, amount of privacy for renters/members, and competition.

@Jeremy Kossler  look at what is backing the fund. .thats critical.. what you can do is get really good performing 1st TD's on high quality assets that will pay this rate ... as opposed to what is backing this particular fund..

The quality of those constructions in Mexico is generally top notch.

With regard to your "DST" and as with many highly structured tax vehicles that have a potential "self dealing" quality to them, there are a number of potential potholes you can easily step in along the way (e.g., constructive receipt doctrine, effective control over nominal 3rd party relationships, lack of genuine risk bearing and compliance with transactional terms, etc.).

Yes, you will likely pay close to or at retail value if you are buying a quality property that has been properly renovated.