You will have expenses, vacancy, have to do a cap-ex hold-back, etc.  

If franchisee goes out and you have to re-tenant  then you could have a cap rate drop for income and an erosion of equity position.If rent is a little above market but you have absolute guarantee from YUM brands a parent corp for example backed by over 10,000 stores then rent is likely to continue over the lease.

If you want to own something like this; find a property that rents at $0.79/SF and buy it at a cap rate that fits your IRR expectations.  

Personally, I'd be looking for a cap rate higher than 9.5% if investing in Englewood.

This give me a cap rate of ~5.9%.

The point was how low of a CAP rate would be needed to achieve that goal based on the starting point of available funds.  

With an A paper loan and a cap rate 6 or 7 or below then you should be able to write off all the income plus some.

Check that like a hawk.For a purchase price of $69,000, you're going to need the net operating income to be $6900 to hit a cap rate of 10%, which is the minimum rate I would accept for a duplex buy way out in a place like McDonald.

learn about 1031 tax deferred exchangescomplete you financial package - 3 years tax returns P&L - real estate portfolio, credit scoreexpect to be rejected by lenders and other W-2 employees - qualify lenders, bankers, mortgage brokers - ask what products they have - see if you qualify for themlook at 20 buildings before offering on any - know the SF dollar cost - keep a journalmail lots of letters (be professional NO yellow childish communications) to owners of apartment buildingsUnderstand what a CAP rate is and how to get to it - fill out your  commercial APODVerify -verify - verify all financial data given you by sellers - sellers are liars (so are buyers) trust NO One!

Then I'd fill in the middle sections at points and drop a cap made of bent pieces of trim coil over the whole thing.