Here is a real world example:http://www.loopnet.com/for-sale/chicago-il/retail/...and anotherhttp://www.loopnet.com/for-sale/chicago-il/retail/...Cap rates in the Commercial / retail/ industrial world are calculated as follows:Net operating income ( again this will assume no debt ) divided by cap rate = valueTalk to any CCIM Broker and they will verify this formula. 

My profession is Purchasing Manager for a fortune 100 auto retailer, and I have been with them for almost 25 years in a few different roles.  

Things like population growth, job growth, and nearby amenities, school availability and goodness, public transportation, and retail development are all important. 

Like I said 2005 ...it may appear lenders have loosened up standards but that is not reality in the mortgage market when you actually try to get one.I am a Mortgage banker and keep pretty close tabs on whats happening.. also i build new construction and sell retail so .. i just look at a sampling of the latest community i built and sold this year... 23 homes sold in 4 months..  3 for cash  1 VA  ( we accpet VA many builders dont but my wife and I respect our veterans and we go the extra mile to put them in one of our homes).. 4 FHA the rest conventional.in years past there would be no cash sales.. and literally all of them would be minimum down and conventional would be rare. 

Not deal breakers.I'm currently an active retail mortgage originator, amongst a couple other things, but Its been my experience that working as a wholesale account executive from 2000 until 2016 and being on the backside of literally thousands of loan closings since the inception of the newest regulations that I can recall only one instance of a set back caused by cents on a transaction, but that was early on in the Dodd/Frank era and was the result of software, that was subsequently fixed by an addition 3 day waiting period, because that was the safest play for the lenders ***.The take away here, again just in my opinion, is on the front side of the transaction, write the offer at whatever it takes to get the contract done, then hand it off to your favorite lender...they'll figure it out. :)

Also want active RE income from rehabs (primarily SF, but could also be small MF or even small retail).Other criteria/wants on the list:-  Mountains...real mountains, not hills or far off across the grasslands mountains, but real mountain views and access to hiking and skiing, etc.-  Family friendly and decent schools- Within 1 hour of a really good children's hospital and an even closer decent ER.- Within 1 hour of an airport- Low taxes!! 

I still think it's a big risk for a retail flip.

Retail buyers buy them as well.  

They were planning on selling retail, but I found them first and we've started to talk in greater detail.

How will retail space be effectively used?