Tiffany, commercial properties are valued based on their NOI (net operating income) and their market cap rate.NOI = $100,000 / 10% cap rate = $1,000,000 market value (for illustration purposes)The NOI will be provided in the offering memorandum along with it's components (rents and expenses) and you should run your own figures through some type of deal analyzer to come up with your own estimate of NOI.  

@Kim Puckett The example I used was for the same house to illustrate the difference rates between primary residences and investment properties.

@Ivan LaiI agree with @Guy Olds that we do have to be mindful of the words we use to illustrate our ideas.  

I know that these margins are slim and I only provide them for illustrative purposes to show where the cutoff between net negative and net positive are.  

There are tons of examples that illustrate this, including Detroit which was 90% dependent on Domestic Automotive.

Below illustrates a historical chart on unemployment from 1996 to today.

Here's a pic of how "grounded" outlets are wired in houses that aren't grounded (hopefully this helps illustrate my explanation)

I'm probably missing something overly simple, but maybe it's best illustrated with an example.  

I have wrote this out for another example so I used $100k rather than $125k but the example should still illustrate the principles.Here is an example of two investment channels you mentioned:Hardmoney lending:$100k lent out for 1 year at 12% interest w/ 2 points will give you a gain of $14k or a pre tax COC of 14%.

This simply illustrates why condos are so dangerous :)