The cap rate is the rate of return the market has determined is adequate to deploy capital for this type of property.As a commercial property owner, you inherently understand that NOI should be your focus because commercial properties derive much of their value from the income they produce.

(these are the derivatives of the cap rate calculation).

The value is derived from these factors.

. * Goal: Is to retire from corporate work (Project Manager) in 10 years to just manage and live off the income derived from my property portfolio.* Risk tolerance: Higher (8 outta 10?)

Tenancy derives from the word TENEO--which means to own or possess.

Generally, the time period of construction is derived during your initial due diligence and provided to you by your in-house construction team, or a third party general contractor.

They may cash flow well and that is where they derive value for the investor.

When the 15 is paid off, a 30 will still have 75% of the balance left.Some like their mortgage - derived from the word muerte, which means 'til death',  to last a long, long time.   

The other benefit derived from Rental property investment is greatly reduced taxes (or no taxes) on investments as compared to stocks or CDs.I am not a CPA nor a topic expert ... just my understanding.  

As a full time investor I derive most of my income from my rentals and have excellent credit, strong savings and positive cash flow but I do not have W2 income.