Josh,In my market...the only way to make the numbers work as you stated above is to go in areas where they are not any owner occupant sales occuring.

It's doubtful by what you said that this mortgage broker gave you any written correspondence on what they said.Regardless of what you were told at the closing you saw a document that read and was an affidavit for owner occupancy and signed it.

One thing about SC is you are being charged 4% owner occupant taxes.  

Check out the website for each city and if needed contact code enforcement to get a current checklist for the certificate of occupancy. 

Properties of that size have local specialized large PM companies that know that demographic and the connections to keep occupancy up and vacancy down.

Opportunity 1 (based on full occupancy)8 unit apartment complexMonthly rent per unit is USD 800 per monthApartments are in good conditionPurchase price (including taxes) USD 170,000Loan payment for 10 years: USD 2,293Opportunity 2 (based on full occupancy)10 unit apartment complexMonthly rent per unit is USD 1,000 per month for two full sizeMonthly rent per unit is USD 800 per month for eight studio typeApartments are in good conditionPurchase price (including taxes) USD 515,000Loan payment for 10 years: USD 6,247

I highly recommend that during your due diligence you speak with an expert with regards to the dentist's occupancy within the space, more specifically, any potential issues due to x-ray's.

The 8 units that have been completed are rented and have been at 90%+ occupancy for the last 2 years, 6 of them are being leased by a major corporation that needs housing for employees in the area.

If you look at all the occupations involved in a RE Deal: RE Broker, Appraiser, Inspector, Mortgage Broker, Attorney, Electricians, Carpenters, Plumbers, Landscapers, etc They only make crumbs or a small slice of the pie compared to the Investor.

So while it is NNN there are some overflow costs that the owner pays some on.I like strip centers because it is like apartments with breakeven occupancy versus a single NNN building.If you are doing a vacant strip center it takes awhile from the leasing up to execution of the lease because of TI's to start the rent once occupancy occurs.What kind of loan depends on the size of the property and quality of the asset.Sellers and brokers market NN as NNN all the time.