In this video, Joel, Principal Broker, answers the question “where should I buy my first single net property?” He gives advice on whether you should purchase a single-net property locally or out of state. Joel also discusses what the ideal location of a single-net property is and areas that are not so ideal.
Should I purchase a property locally? Does the property need to be close to my home?
Most single tenant net lease properties are investment grade tenants backed by thousands of locations. The question can be answered by saying that it is not important that the property is located near your house that allows you to drive by and see the property. Some of Joel’s clients invest in properties in other states for various reasons.
Why would someone purchase a property in another state?
Some of the states may be a no income tax state, the state may have higher cap rates than other states offer, or lower price points for the same tenant may be available in a different state. The purchase price for a property may be lower in different states which means that rent may be lower as well for the tenant. Looking in various states is often the best strategy to find a match to a particular investors situation and goals with buying a single tenant NNN property