Passive Income Strategy
What If Your Tenants Paid Your Salary Every Month?
Doctors, attorneys, and executives who've discovered NNN real estate all say the same thing: "I wish I'd done this 10 years ago." A national credit tenant signs a 15-year lease, pays the property taxes, handles the maintenance, and mails you a check. Every month. Whether you work that month or not.
What NNN Actually Means (and Why It Changes Everything)
NNN isn't just a lease type. It's a fundamental shift in who does the work.
Traditional Landlord
NNN Landlord
The Income Replacement Math
Gross NOI at a 6.5% cap rate, all-cash. Financed cash flow on equity will differ based on LTV and interest rate.
| Investment | Cap Rate | Annual NOI | Monthly Check | Typical Property |
|---|---|---|---|---|
| $500K | 6.5% | $32,500/yr | $2,708/mo | Single NNN, all-cash |
| $1M | 6.5% | $65,000/yr | $5,417/mo | Single NNN or 2-pack |
| $2M | 6.5% | $130,000/yr | $10,833/mo | Credit-tenant NNN |
| $3M | 6.5% | $195,000/yr | $16,250/mo | NNN portfolio, 2–3 assets |
| $5M | 6.5% | $325,000/yr | $27,083/mo | Diversified NNN portfolio |
NNN cap rates in Central Florida currently range from 5.25% (credit-tenant fast food) to 7.5%+ (regional tenant, secondary location).
Who Buys NNN and Why
Physicians & Dentists
High W-2 income, no time to be a landlord. NNN depreciation offsets professional income. The monthly check funds retirement without a second job.
Attorneys & CPAs
They understand the tax advantages. Cost segregation + NNN is a sophisticated move their colleagues don't know about. They value the simplicity.
Corporate Executives
Salary replacement planning. They want to know: if I quit tomorrow, does the income still come in? NNN answers yes — for 15+ years.
1031 Exchange Buyers
Just sold a property and need a passive replacement. NNN is the most common 1031 vehicle because it requires zero active management.
Retirees
No more property management. Fixed income that beats a CD. A lease with 10+ years left is effectively an annuity with a hard asset behind it.
Business Sellers
Just exited and sitting on liquidity. The discipline of building a business translates directly to understanding NNN — you own the real estate, the tenant runs the business.
Understanding Tenant Credit Quality
Investment-Grade Corporate
Dollar General, 7-Eleven, Wawa, CVS, Starbucks, Chick-fil-A
4.75–6.0%
Lowest risk
Corporate guarantee on the lease. The parent company is obligated to pay rent regardless of location performance. Trade at tight caps because institutions buy them.
Strong Franchisee
Multi-unit QSR operators, regional dental groups, urgent care chains
6.0–7.5%
Moderate risk
Franchisee guarantee — you're lending against an operating business, not a balance sheet. Multi-unit operators with 20+ locations are materially stronger than single-location franchisees.
Local / Regional Tenant
Local restaurants, single-location medical, regional retailers
7.5–9.5%
Higher risk
Higher yield reflects higher risk. These require active monitoring and hands-on management if things go wrong. Not recommended for income replacement buyers who want truly passive income.
A Personal Note on Why I Do This
I've watched professionals spend 30 years building careers that generate income only when they show up. A surgeon who can't operate, a lawyer who can't bill — the income stops. That's a fragile model for everything you've built.
NNN real estate is the simplest way I know to build income that doesn't require your presence. You own the building. A national company occupies it. They pay you to be there for 15 years. You go live your life.
I'm committed to helping people get this right — not just closing a deal, but making sure the property they buy genuinely serves their income goals for the next decade. That means being honest when a deal doesn't fit, even if it costs me a commission.
Common Questions
How passive is NNN real estate really?
Absolute NNN (triple-net) leases transfer property taxes, insurance, and all maintenance to the tenant. Your only responsibility as the landlord is collecting rent and managing the lease document. You will not receive calls about HVAC repairs, parking lot potholes, or roof leaks — those are contractually the tenant's problem. Corporate-guaranteed NNN leases (e.g., Dollar General, 7-Eleven, Starbucks) are as passive as commercial real estate gets.
What if the NNN tenant leaves or goes bankrupt?
Tenant credit quality is everything in NNN investing. Investment-grade corporate tenants (S&P rated BBB- or better) rarely vacate before lease expiration, and if they do, they continue paying rent through the lease term. Franchisee-guaranteed leases carry more risk — the guarantee is only as strong as the franchisee's balance sheet. We help you understand the difference and underwrite accordingly. Diversifying across 2–3 NNN properties reduces single-tenant risk.
How much do I need to invest to replace a $200,000 salary with NNN income?
At a 6.5% cap rate, generating $200,000/year in gross NOI requires approximately $3.08M in property value. With 65% LTV financing (borrowing ~$2M at 7%), your equity requirement is roughly $1.08M and net cash flow after debt service approximates $80,000–$100,000/year. To replace a full $200K salary in net cash flow typically requires $3–4M in unlevered equity or a levered portfolio worth $6–8M. We model this precisely for each client's situation.
What are the best NNN tenants in Florida right now?
Investment-grade corporate NNN tenants actively expanding in Florida include Dollar General, Dollar Tree/Family Dollar, 7-Eleven, Wawa, CVS, Walgreens, O'Reilly Auto Parts, AutoZone, Starbucks, Chick-fil-A, and McDonald's. Medical NNN tenants (dialysis, urgent care, dental) are also strong and benefit from long lease terms and mission-critical locations. Cap rates vary by tenant credit — corporate-guaranteed Wawa will trade tighter than a regional fast-food franchisee.
Is NNN real estate better than dividend stocks for income replacement?
NNN real estate offers several advantages over dividend stocks for income replacement: (1) leverage — you can control a $2M property with $700K down, amplifying returns on equity; (2) depreciation — real estate generates paper losses that shelter income from taxes, something dividends can't do; (3) rent escalators — built-in 1–2% annual rent bumps versus unpredictable dividend policy; (4) tangible asset backing — you own the land and building. The tradeoff is illiquidity — you can't sell half a NNN property in 3 seconds like a stock position.
Get Started
Get Your Income Replacement Plan
Tell us your target monthly income and equity available. We'll build a specific NNN strategy — not a generic brochure.
NNN Income Strategy Consultation
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