ATM Machines: Anyone doing this?

[Mark S.]

Just listened to the most recent Real Estate Guys Radio podcast. I think I've heard about this opportunity previously as well. The gist: Buy a tranche of 7 ATM machines for $104K. Have them turnkey managed with a guaranteed return for the 7-year contract, which comes out to around 25% cash on cash. Aggressive depreciation schedule on the machines for the first 5 years sheltering the majority of the cash flow. My Thoughts/Questions: What happens after the first 5 years once machines are fully depreciated? Is all cash flow taxed at ordinary income rates? Management company guarantees a "floor" on the monthly distributions, but in months where the machines do well, they keep the upside. Does this seem reasonable? I'd rather have some split or share of the upside and not take a guarantee and give 100% of the upside away. What other considerations are there? Is anyone currently doing this? What's been your experience? Thanks in advance.