However, for commercial properties in Colorado Springs it is common to see deals trade at a 5% cap rate.

I am a luxury watch dealer by trade, but I've been looking to get into real estate investing.

Larger deals tend to trade in retail at higher cap rates.What you need to decide is how long you want your money tied up into a deal (their exit strategy), and how much you want to place, and if you get cash flow right away, partial, or none until certain metrics are hit.As an example you might get 8% preferred return but upside might be more marginal than a small retail turn around deal where exit is in 2 to 3 years and equity multiple is likely much higher for overall return.

Important to not take one statistic and make conclusions about the entire market.I would have to get to know these areas a lot better to understand the trade offs and dynamics.

I also add baseboards and crown molding What was the outcome?

The reason why is because there has to always be a trade off when it comes to finding a great neighborhood/turnkey and cash flow.

Congrats - looks like a solid outcome!

Rarely happens, but it's a potential outcome. 

Where I am going with this is someone may trade a W2 wage slave job for a job of owning rental units to house people and their pets.

I can't speak for this deal in particular, but you'll always pay more for turnkeys-- trade-off for not having to do any work.The only thing I see in the deal is Norada didn't include estimates for vacancy and repairs, and I would never analyze a deal without including those.