True 7.74% Cap Rate | Long-Term Lease Stability

This well-positioned single-family residence offers investors a rare opportunity to acquire a stabilized, income-producing property leased to an established assisted care operator under a NN (Double Net) lease structure. The tenant has recently executed a new 5-year lease, providing immediate income certainty and built-in rent growth.

Valuation & Underwriting Consideration

This asset should be evaluated based on its income performance and lease structure. As a single-family residence leased to an operator, traditional owner-occupied comparable home sales may not fully reflect the investment value of the property.

This opportunity is well suited for investors seeking stable yield, limited management intensity, and long-term lease security supported by a needs-based tenant.

The current lease begins at $5,600 per month, with annual scheduled increases as follows:

• Year 2: $5,700/month

• Year 3: $5,800/month

• Year 4: $5,900/month

• Year 5: $6,000/month

Under the NN lease structure, the Landlord is responsible for property taxes, insurance, and HOA fees, while the landlord retains ownership of a professionally operated residential asset with predictable cash flow. This investment delivers a true 7.74% cap rate, supported by contractual rent increases and a mission-critical use tenant.

Investment Highlights

• • Single-family home leased to assisted care operator

  • Modified-NN lease structure

  • New 5-year lease in place

  • Two (2) five-year renewal options

  • Annual rent escalations built into lease

  • Tenant pays utilities, maintenance, landscaping, and repairs

  • Landlord pays taxes, insurance, and HOA

  • True 7.5% cap rate

  • Needs-based tenant with long-term demand

  • Passive ownership profile

This offering is ideal for investors seeking reliable cash flow, reduced management intensity, and long-term lease security backed by a needs-based tenant.

Net Operating Income (NOI) by Year

Sales Price: $800,000
Cap Rate: 7.74% (True)

Year 1 NOI (Base Year)

• Cap Rate Calculation:
  $800,000 × 7.74% = $61,875 NOI

Annual Rent Schedule

• Year 1: $5,600/mo = $67,200/yr

• Year 2: $5,700/mo = $68,400/yr

• Year 3: $5,800/mo = $69,600/yr

• Year 4: $5,900/mo = $70,800/yr

• Year 5: $6,000/mo = $72,000/yr

Based on Year 1 NOI and contractual rent increases (with operating expenses assumed stable), projected NOI trends as follows:

NOI growth is driven by scheduled rent increases while maintaining a predictable expense profile.