Triple Net (NNN) Investment Analysis
Analyze NNN Properties for Passive Income
Enter a purchase price, tenant, and lease terms — get cap rate, cash-on-cash return, and 10-year income projections in seconds. Built for buyers who need real numbers before making an offer, not after.
Property Type
Property & Revenue
Financing
Hold Period & Exit
When you sell, will the market be hotter, the same, or cooler than today? This determines your exit cap rate and sale price.
Conservative — you assume the market cools and buyers pay less per dollar of income. This is the safer assumption most lenders and institutional investors use.
Overall Deal Grade
A
IRR
13.89%
★★★★★Strong return
DSCR
1.37x
★★★★★Strong coverage
Cash-on-Cash
10.72%
★★★★★Excellent cash yield
Equity Multiple
2.81x
★★★★★Doubled your equity
Cash Flow Analysis
NOI vs Debt Service vs Cash Flow by year
Equity Buildup
How your equity grows: loan paydown + cash flow + appreciation
Rent Schedule
Annual NOI growth over hold period
Loan Paydown
Remaining loan balance over hold period
Income & NOI
- Year 1 EGI
- $80,000
- Year 1 OPEX
- $0
- Year 1 NOI
- $80,000
- Entrance Cap Rate
- 8.00%
- Yield on Cost
- 8.00%
- 10-Yr Total NOI
- $875,978
Financing
- Purchase Price
- $1,000,000
- Down Payment
- $250,000
- Total Equity Invested
- $272,500
- Loan Amount
- $750,000
- Monthly Payment
- $4,864
- Annual Debt Service
- $58,374
- DSCR
- 1.37x
Exit & Returns
- Exit Cap Rate
- 8.50%
- Exit Year NOI
- $97,520
- Exit Value
- $1,147,289
- Selling Costs (3%)
- $34,419
- Loan Payoff
- $639,757
- Net Sale Proceeds
- $473,113
- Total Profit
- $765,352
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Benchmark Comparison
| Metric | Your Deal | Benchmark | Status | Insight |
|---|---|---|---|---|
| IRR | 13.89% | > 12% strong | PASS | Strong annualized return |
| DSCR | 1.37x | > 1.25x lender min | PASS | Meets lender requirements |
| Cash-on-Cash | 10.72% | > 6% target | PASS | Good annual cash yield |
| Equity Multiple | 2.81x | > 2.0x strong | PASS | Doubled equity or better |
| Yield on Cost vs Exit Cap | 8.00% | 8.50% exit cap | WATCH | Buying above exit cap — assumes compression |
Sensitivity Matrix
Exit value at different cap rate and NOI growth combinations
| Exit Cap / Growth | 0% Growth | 1% Growth | 2% Growth | 3% Growth | 4% Growth |
|---|---|---|---|---|---|
| 7.00% | $1,142,857 | $1,262,425 | $1,393,136 | $1,535,904 | $1,691,708 |
| 7.50% | $1,066,667 | $1,178,264 | $1,300,261 | $1,433,511 | $1,578,927 |
| 8.00% | $1,000,000 | $1,104,622 | $1,218,994 | $1,343,916 | $1,480,244 |
| 8.50% | $941,176 | $1,039,644 | $1,147,289 | $1,264,862 | $1,393,171 |
| 9.00% | $888,889 | $981,886 | $1,083,551 | $1,194,592 | $1,315,773 |
Green = exit value exceeds purchase price. Red = exit value below purchase price.
Year-by-Year Cash Flows
Metric Glossary
IRR
Internal Rate of Return — the annualized return on every dollar you invest, accounting for timing of cash flows.
Equity Multiple
Total money returned divided by total money invested. 2.0x = you doubled your money.
Cash-on-Cash
Annual cash flow as a percentage of your invested equity. Measures what the property pays you now.
DSCR
Debt Service Coverage Ratio — how many times NOI covers the mortgage. Lenders require 1.25x minimum.
Cap Rate
NOI divided by property value. The return assuming all-cash purchase. Lower cap = higher price.
NOI
Net Operating Income — rent minus operating expenses, before mortgage payments.
Yield on Cost
Year 1 NOI divided by purchase price. The cap rate you created for yourself as a buyer.
Exit Cap
The assumed cap rate when you sell. Higher exit cap = lower sale price (conservative).
For informational and educational purposes only. Not financial or investment advice. Consult a licensed professional before making investment decisions.
Why NNN Properties Beat Other Investments
✋ Hands-Off Management
Tenant pays all operating expenses. You collect rent. No repairs, no maintenance calls, no surprise bills. Perfect if you want true passive income without being a landlord.
💰 Consistent Cash Flow
Predictable income from investment-grade tenants (Walgreens, CVS, Chick-fil-A). Long-term leases (10–20 years) lock in rent. Unlike multifamily or retail, you're not competing for market rent—your tenant is contractually obligated.
📊 Institutional-Grade Returns
Cap rates of 5.5–7.5% beat most cap-rate products (office, bonds). With inflation protection from lease escalators (2–3% annual increases), your real returns stay strong over 10–20 year hold periods.
🏦 Financeable Asset
Banks love NNN properties because tenant cash flow is predictable. You can finance 70–75% of purchase price at favorable rates. Unlike owner-occupied property, NNN properties are valued on the lease, not the building.
Investment-Grade NNN Tenants
Walgreens
Pharmacy
Cap rate: 5.75–7.0%
CVS
Pharmacy
Cap rate: 5.75–7.0%
Dollar General
Dollar Store
Cap rate: 5.5–6.75%
Dollar Tree
Dollar Store
Cap rate: 5.75–7.0%
Chick-fil-A
QSR Drive-Thru
Cap rate: 5.0–6.5%
Starbucks
Coffee/QSR
Cap rate: 5.25–6.75%
Chipotle
Fast Casual
Cap rate: 5.0–6.25%
AutoZone
Auto Parts
Cap rate: 5.5–6.75%
O'Reilly Auto
Auto Parts
Cap rate: 5.75–7.0%
NNN Analyzer Questions
What is an NNN (triple net) property and why is it different?
NNN (triple net) means the tenant pays all three costs: property taxes, insurance, and maintenance (the 'three nets'). You only collect base rent. This dramatically simplifies your role — no active management, no surprise repair bills. Most NNN investors are purely passive, collecting rent checks from Fortune 500 tenants like Walgreens, CVS, or Chick-fil-A.
What cap rate should I target for an NNN property?
NNN cap rates vary by tenant credit and property type. Investment-grade tenants (Walgreens, CVS, Dollar General) trade at 5.5–7.0%. Smaller regional chains may yield 6.5–8.0%. Our analyzer helps you compare your target cap rate against market benchmarks for your tenant type.
Why is tenant credit so important in NNN investing?
In NNN leases, the tenant's credit directly impacts your risk and cap rate. Investment-grade tenants (S&P rated BBB- or higher) are low-risk and command lower cap rates (5–6.5%). Single-unit operators are higher-risk and demand higher cap rates (7–9%+) to compensate. Our analyzer shows how tenant credit affects your return and break-even analysis.
What's the difference between absolute NNN and other lease types?
Absolute NNN means you, the landlord, are responsible for nothing — tenant pays everything, including capex replacements (roof, HVAC, etc.). Modified NNN means you share some costs. Absolute NNN is the purest passive income but comes with tenant credit risk. Our analyzer accounts for both lease types and their different expense structures.
How do I evaluate cash flow from an NNN property?
NNN cash flow is simple: annual base rent. That's your income. Expenses (taxes, insurance, capex) are the tenant's responsibility in absolute NNN. Our analyzer shows: (1) annual rent, (2) cap rate you're paying, (3) cash-on-cash return based on your down payment, (4) growth projection if rent escalates 2–3% annually.
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