or like others said, high risk = high failure...
long ago, I told myself I need to concentrate in residential properties and not take any chance jumping into CRE world.
the reason was, I bought a small office park 6 years ago, truly 30 cents on a dollar from Chase, was list for $750k, I bought it with 255k cash. it took me 2 years to fill up the spaces, 2 big tenants occupy half the space and 4 smaller tenants occupy other half. cash flow is great now, $7400 a month, but if I lose one big tenant, its 25% vacant.
I been following a CRE auction house for many years now, every month, they have all types of CRE on auction block, mid size malls, small commercial strips, single tenant box stores, office parks, lots of them brand new, but they all empty, many of them sold pennies on a dollar. this month, 3 brand new office building near Indy be auction off, beautiful buildings, great locations, but no tenants.
I think for small investors, mom and pop size, the key is must owner occupy and rent out other portions to supplement, even on a NNN lease, single tenant buildings still very high risk.
