Mortgage is taking all of rental income

[Bob Nickel]

There is a Wendy's for sale for $1.7 million. It has a 5.5% cap rate which is $93.5k. How can you profit since the mortgage will take almost all of that. I used online mortgage calculator and I don't get how people profit like this.

[James Johner]

@Bob Nickel

Bob. Really depends on a ton of factors. Cash buyers often scoop up deals and can pay the premiums you are describing and not have to factor in debt. As long as they are seeing a return of 3-5% they are satisfied. Every deal is unique though so this is just an assumption to what you described.