8.25% Cap | NN Leased Residential Investment | 5-Year Term $750,000

True 8.25% 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 modified NN (Double Net) lease structure. The tenant recently executed a new five-year lease, providing immediate income certainty, contractual rent growth, and long-term lease stability.

Valuation & Underwriting Consideration

This asset should be evaluated based on its income performance, lease structure, and investment characteristics. As a single-family residence leased to an assisted care 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 responsibilities, predictable cash flow, and long-term lease security supported by a needs-based tenant.

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

Year 2: $5,700 per month
Year 3: $5,800 per month
Year 4: $5,900 per month
Year 5: $6,000 per month

Under the modified NN lease structure, the tenant is responsible for utilities, maintenance, landscaping, and repairs. The landlord is responsible for property taxes, insurance, and HOA fees.

At the newly reduced asking price of $750,000, the property delivers a true Year 1 cap rate of 8.25%, supported by a five-year lease, contractual rent increases, and a mission-critical residential use.

Investment Highlights

• Newly reduced price of $750,000
• True 8.25% Year 1 cap rate
• Single-family home leased to an assisted care operator
• Modified NN lease structure
• New five-year lease in place
• Two five-year renewal options
• Annual rent escalations built into the lease
• Tenant pays utilities, maintenance, landscaping, and repairs
• Landlord pays property taxes, insurance, and HOA fees
• Needs-based tenant with long-term demand
• Predictable income growth
• Reduced management intensity
• Passive ownership profile

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

Net Operating Income and Cap Rate

Sales Price: $750,000
Year 1 NOI: $61,875
Year 1 Cap Rate: 8.25%

Year 1 Cap Rate Calculation

$61,875 NOI ÷ $750,000 purchase price = 8.25% cap rate

Annual Rent Schedule

Based on the Year 1 NOI and contractual rent increases, with operating expenses assumed to remain stable, projected NOI and returns are as follows:

NOI growth is driven by scheduled annual rent increases while maintaining a predictable expense profile. Based on the current projections, the investor’s return increases from 8.25% in Year 1 to approximately 8.89% in Year 5.