Generally they buy a franchise and it is way overvalued for the income stream it produces as an owner operator.I saw it yesterday a guy that owns a Jersey Mike's sub shop I ate at.

Couric ate it all and said, 'Now I can die content.'

That probably ate 40% of your down payment...So interest rates and CAP are linked by your Cash on Cash calculations.I hope that clears this up a little...

I wouldn't let the high cap make you suspicious just because - but be diligent with your own due diligence.Generally speaking, I'd say the higher cap ate compensates for lower appreciation potential + tenant demgraphic.

I ate 2,100 month being on a 15 year.  

Any profits will be ate up by hiring out work to be done on the properties.

However, properties in Indiana are 50k a piece, which in cali they are 500k a piece(maybe)  So total purchase equals out.However a investor here can get started with 13-15k, instead of 100k there.You are right 100k, over 20 years, some of that gets ate by inflation.But keep in mind total investment was only 13kSay 20 percent of the 100k gets ate by inflation.

I did notice the HOA ate up the profits mighty quick.  

Sure, we get phone calls ate 3 in the morning because a kitchen light blew out, but that is very rare and even though I get a little angry it is still a nice feeling to know that my tenants have the ability to resolve problems when they get no satisfaction from managers.My wife and I carry separate cell phones for our tenants to call us.To manage our properties, our lease agreement is 24 pages that consists of all our rent payment and eviction policies.

I once ate lunch at the Flagstop Cafe in Boerne, TX.