Making money after debt services???

[Adam Philpot]

I'm interested to know how long term hold strategies work on multifamily. I've never done a large multifamily deal but when I do the math not sure how anyone can make any Money on a property doing a 6% CAP or less. I'm obviously missing something so if anyone can set me straight or recommend some reading I'd really benefit.

For instance:

10 unit Asking price: 1,000,000

NOI: 60k

Down payment: 250k

Reserves:50k

5.8% interest Loan:750k

P&I: 52.8k