Hi, I had a similar problem when analysing a commercial property 2000 miles away which was partially NNN ! I could not come up with a reasonable number as cap was between 8 and 9.
If I would use a conservative number then the return was not attractive enough to take a chance for being a long distance owner. Few extra trips and stay / year at the site and the reserve would go down drastically.
I backed out of the deal. If it would have been a true NNN then I would have gone ahead even with a lower cap number. Thought I would put my 2 cents in. Wish I was in a better position or little more astute / experienced to suggest some +ve solution.
Good Luck in your future endeavours
birchman2
Hi, I had a similar problem when analysing a commercial property 2000 miles away which was partially NNN ! I could not come up with a reasonable number as cap was between 8 and 9.
If I would use a conservative number then the return was not attractive enough to take a chance for being a long distance owner. Few extra trips and stay / year at the site and the reserve would go down drastically.
I backed out of the deal. If it would have been a true NNN then I would have gone ahead even with a lower cap number. Thought I would put my 2 cents in. Wish I was in a better position or little more astute / experienced to suggest some +ve solution.
Good Luck in your future endeavours