If levels mainly stay at where they are at then the distress will continue on a broad level.Example:Commercial vintage loan originated with a 10 year term in 2005.Property is a small retail strip center.Original price was at 1 million and 90% ltv and buyer put down 100,000 leaving a loan balance of 900,000.

Those properties tend to be first to fall as when interest rates hopefully drop in coming years more of the better built vintage homes with larger lots and mature landscaping are put on the market.

You can get a credit tenant loan at much higher LTV's from lenders because they see it as less risk.With the seller holding back a second you can get in for not much down.Hit a CAP of 7 to 9 going in and with triple net sit back and collect mailbox money.The downside is rent increases are set in stone and may not rise as fast as inflation diminishing returns.Also you have to pay special attention to the vintage of the lease.Typically they go for 20 to 25 years total.A newly signed lease has more security after the store has been built than a vintage 15 years in.They could decide not to renew and when you rent out to the new tenant as a second or third generational space the price per sq ft will typically be lower.So with 2 million I would do some safe CAP properties and then mix in the distressed multifamily for aggressive growth.

Since it is covered with carpet I would assume it is a somewhat "vintage" wood floor.

Not any MF apartments, but selective growth markets with solid relative value add opportunities to makeover of vintage 1980s properties, bring in more efficient property management team, essentially re-positioning the asset to make it more attractive to existing and prospective renters.  

But these are the same vintage houses that get similar rents as East Central.  

TRUE triple net you do not do anything but collect the check.You need to watch out for int he lease agreements who is responsible for roof,structure,parking lot,and utility lines.You also need to know if these NNN tenants are mom and pop or corporate.You also need to know the vintage date for the leases and what each tenants sales are running per sq ft yearly compared to their current rent rate.It could be their leases are coming up to reset or they have secretly told the current landlord they are fixing to default unless they lower the rent or move.Bottom line is you could benefit from a professional who works in the commercial arena and does commercial deals all the time.For instance I specifically do retail,NNN,and multifamily.These are my areas of expertise where I help people nationwide.Hotel,Office,Industrial,etc. is not what I focus on.It's really hard to get sellers to take less of a price upfront.Better with negotiating is to get them under due diligence and they do not want to start over and then disprove their numbers and bring them down to reality.Of course if they have many,many buyers wanting to purchase with multiple offers then they have the strength if each buyer is equal.

@John Stoeber Every single sub-market has a different cap rate (not trying to be difficult, telling you the truth) that varies by property type, vintage, capex, etc. 

It's important to have this established first to help narrow your focus Example:Purchase PriceUnit CountType of Investment (value add, etc)Vintage*These are just a few, but it's up to the investor to determine what's most important to them. 

My goal is to get into apartment buildings and have enough passive income to replace my current job, to spend more time with my family, and to build vintage vehicles.