Need 17% cap to worth my while?

[Diane G.]

I am looking at this listing in Bakersfield, C class, 16 units, total monthly rent of $10K, asking $1.2M, claiming 7.75% cap... Now, if I apply the 50% rule, I get $5K net rent, which goes towards paying the mortgage, and I would just barely break even.... Now, chances are expenses would be more than 50% between PM and uncollectible rent etc....So, even at 100% occupancy, I would be break even at the best but more likely lose money....at 7.75 cap....

Now, properties in this neighborhood had 0 appreciation in the last 14 years....

Lets say I need to make $2K a month to worth my while, that means purchase price can't be over $600K...

So, why are tons of investors buying up C at 6% cap? How did they make money when there is no appreciation potential?  Or my math is completely off?