Market Data
straightenDeal Sizing Guide

Find Your Optimal Deal Size

Interactive tools to match your capital, risk tolerance, and goals to the right NNN investment tier.

NNN Cap Rate
6.82%
Current market avg
30Y Mortgage
7.24%
FRED MORTGAGE30US
Sweet Spot
$500K–$2M
Best risk-adjusted returns
Min. Down Payment
$63K
At $250K / 25% down
Data as of Q2 2026 · Sources: Federal Reserve (FRED), CoStar, CBRE Research

Deal Sizing Calculator

Adjust the sliders to model any NNN deal. See real-time cash flow, returns, and DSCR based on current market rates.

Growth Tier · $750K–$2M
$1.0M
$250K$5M
25% ($250K)
15%50%
6.8%
4.5%8.0%
Monthly Cash Flow
$267
Cash-on-Cash
1.3%
DSCR
1.05x
Annual NOI
$68,200
Debt Service
$64,995
Net Cash Flow
$3,205/yr
Warning: DSCR below 1.20x - most lenders require 1.25x minimum. Consider increasing your down payment or finding a higher cap rate deal.
$82.5KGross NOI$85.5KDebt Service$3.0KNet Cash Flow$1500K Purchase · 5.5% Cap · 7.2% Rate
MONTHLY
$0
CASH-ON-CASH
-0.8%
DOWN PAYMENT
$375K
Quick Compare
How to read the waterfall: Green is your gross NOI (rental income). Red is annual debt service. Blue is what you keep - your net cash flow after the mortgage is paid. The higher the green bar relative to red, the more profit margin you have.

The Three Tiers of NNN Investing

Each tier has distinct risk-return profiles, tenant quality, and capital requirements. Click to explore.

rocket_launch
Starter
$250K – $750K
CAP RATE
5.5–7%

First-time investors building experience with manageable capital outlay

Down Payment
$63K – $188K
DSCR Range
1.25–1.35x
Lease Term
10–15 yrs
Financing
Community banks, credit unions, SBA 504 loans
Dollar GeneralO'Reilly Auto PartsFamily DollarSherwin-Williams
Click for details ▼
trending_up
Growth
$750K – $2M
CAP RATE
5.5–6.5%

Intermediate investors scaling portfolio with investment-grade tenants

Down Payment
$188K – $500K
DSCR Range
1.35–1.5x
Lease Term
15–20 yrs
Financing
Regional banks, CMBS conduit, insurance company loans
AutoZoneTaco BellO'Reilly Auto PartsStarbucks (drive-thru)
Click for details ▼
domain
Institutional
$2M – $5M+
CAP RATE
4.5–6.5%

Seasoned investors seeking premium credit and long-term stability

Down Payment
$500K – $1250K
DSCR Range
1.4–1.6x
Lease Term
20+ yrs
Financing
Life insurance companies, CMBS, national banks
CVS7-ElevenChick-fil-AWalgreens
Click for details ▼

Risk vs. Return by Deal Size

Larger circles represent higher purchase prices. Lower-left corner is the 'sweet spot' - low risk with solid returns.

Risk Level →Cap Rate / Return →5.0%5.5%6.0%6.5%7.0%LowMed-LowMediumMed-HighHighSweet SpotHigh Risk / High ReturnStarter ($250K–$750K)Growth ($750K–$2M)Institutional ($2M–$5M+)

Reading the Chart

Starter deals (green) cluster upper-right with higher returns but more risk from lower-credit tenants and secondary markets.

Growth deals (blue) occupy the middle - the best risk-adjusted returns for most investors.

Institutional deals (purple) are lower-left with the most stability but compressed cap rates. Ideal for wealth preservation.

MARKET INSIGHT

The stored 10-year Treasury is 5.05%. The Boulder Group Q2 2026 cap rate minus that yield is 177 bps. That difference is calculated, not a quoted spread.

Building a Portfolio Over Time

Most successful NNN investors follow a staged approach - starting small, proving the model, and scaling with equity and experience.

$500K$1.5M$3.5M$5M+Year 1Year 2-3Year 3-5Year 5-7
1
First DealYear 1

Acquire a starter NNN property. Learn operations, tenant management, and financing.

Portfolio: $500K · Equity: $125K
2
Scale UpYear 2-3

Add a growth-tier deal. Diversify across tenants and markets for stability.

Portfolio: $1.5M · Equity: $375K
3
PortfolioYear 3-5

Layer institutional deals. 3+ properties across different sectors and geographies.

Portfolio: $3.5M · Equity: $875K
4
OptimizeYear 5-7

1031 exchange into higher-quality assets. Refinance to pull equity for next acquisitions.

Portfolio: $5M+ · Equity: $1250K

Sample Deal Economics

Illustrative prices using the stored 30-year mortgage of 7.24% (FRED MORTGAGE30US). Not a quoted net lease loan rate.

storefront
Dollar General
$0.5M
Cap Rate6.2%
Down Payment (25%)$125K
Annual NOI$31.0K
Annual Debt Service$32.5K
Monthly Cash Flow$-125
Cash-on-Cash-1.2%
DSCR0.95x
garage
AutoZone
$1.5M
Cap Rate5.5%
Down Payment (25%)$375K
Annual NOI$82.5K
Annual Debt Service$97.5K
Monthly Cash Flow$-1,249
Cash-on-Cash-4.0%
DSCR0.85x
local_pharmacy
CVS
$3.0M
Cap Rate6.4%
Down Payment (25%)$750K
Annual NOI$192.0K
Annual Debt Service$195.0K
Monthly Cash Flow$-249
Cash-on-Cash-0.4%
DSCR0.98x

Calculations assume 25% down, the stored 30-year mortgage of 7.24%, and 25-year amortization. Sample prices are illustrations, not live listings.Actual returns vary by property, market, and financing terms.

Sizing Deep Dive

Capital Requirements by Tier

The golden rule: never invest more than 50% of your liquid capital in a single deal. If you have $300K liquid, your maximum down payment should be $150K - which puts you in the starter-to-growth range.

Beyond the down payment, budget 3–5% of purchase price for closing costs (title, appraisal, legal, inspections). A $1M deal typically costs $30K–$50K to close on top of your equity.

Maintain 6–12 months of mortgage payments as a cash reserve. For a $1.5M deal with a ~$8,500/month payment, that means $51K–$102K set aside for emergencies, even though vacancies in NNN are rare with long-term leases.

Starter
Liquid Capital: $200K–$500K
Down Payment: $63K–$188K
Cash Reserve: $15K–$45K
Growth
Liquid Capital: $500K–$1.2M
Down Payment: $188K–$500K
Cash Reserve: $45K–$100K
Institutional
Liquid Capital: $1.2M–$3M+
Down Payment: $500K–$1.25M
Cash Reserve: $100K–$250K

Key Takeaways

check_circleStart with $500K–$750K deals to learn the asset class with manageable capital ($125K–$188K down at 25%).
check_circleThe stored 30-year mortgage is 7.24% (FRED). It is a residential series, not a net lease loan quote.
check_circleNever invest more than 50% of liquid capital in a single deal - maintain reserves for closing costs and 6–12 months of mortgage payments.
check_circleDiversify across tenant types and markets as you scale - avoid putting all equity into one tenant brand or geography.
check_circleUse 1031 exchanges to trade up from starter to institutional deals tax-free as your portfolio appreciates.
check_circleAim for 1.25x DSCR minimum - lenders require it, and it gives you breathing room if rates rise at refinancing.
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Data Sources: Cap rates derived from Net Lease Advisor, Boulder Group Net Lease Research, Investment Grade (investmentgrade.com), B+E Net Lease (tradenetlease.com), and industry surveys (H2 2025 closings). NNN loan rates from Select Commercial (~5.77% as of Jan 2026). Treasury and mortgage rates from Federal Reserve (FRED). DSCR ranges and financing terms based on MBA Origination Survey (2024) and CBRE Lending Momentum Index (Q2 2026). Single-tenant retail market data from Colliers STNL H1 2025 Report (median cap 6.8%, median $309/sqft). All cap rates shown are approximate market averages and vary significantly by location, lease term remaining, and tenant credit quality.

Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Figures may be estimated from publicly available sources and should be verified with primary data providers (CoStar, MSCI RCA, CBRE, FRED) before use in investment decisions. Past performance does not guarantee future results.

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