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Replacement Strategies

DST vs. NNN vs. Traditional Rental Property

Three very different ownership experiences, three very different risk profiles. An educational comparison, not a recommendation.

Traditional rental ownership means you own the asset directly and control it directly. You choose the tenant, the contractor, the rent and the exit. You also carry the management burden and the vacancy risk.

A triple-net or NNN property is generally leased to a tenant responsible for specified costs such as taxes, insurance and maintenance under the lease. Day-to-day responsibility may be reduced, but the risks change rather than disappear: tenant credit quality, lease term and structure, location durability, re-leasing risk at expiration, financing terms, and concentration in a single tenant and building.

A Delaware Statutory Trust is a structure in which investors hold beneficial interests in a trust that owns real estate. Certain properly structured DST interests may be used in some 1031 exchanges. DST interests are generally securities. They involve risk including possible loss of principal, and investors typically have limited control and limited liquidity.

This website does not offer, solicit or recommend any DST or other security, does not present projected returns, and does not evaluate suitability. That work belongs to appropriately licensed professionals. What Jacob can do is help you understand the real estate side of each path and coordinate with the right specialists.

Important: These calculations are for general educational and planning purposes only. They aren't an appraisal, tax calculation, legal opinion, investment recommendation or guarantee of results. Tax basis, depreciation, exchange eligibility and tax consequences can vary substantially based on individual facts. Review your specific situation with your CPA, attorney, qualified intermediary and other appropriate professionals before acting.

Questions about how this applies to your property?