It can also be difficult if not impossible to access if needed in the future and can vanish with a market correction.

There are plenty of books on commercial real estate/CAP rates.

., and a reserve for capex) to get your Net Operating Income (NOI)From your calculated NOI, you can really start digging deep:Subtract your debt service from your NOI to get your cash flowDivide your NOI by the acquisition cost to get your cap rateTake your NOI, add the reserve for capex back in, then subtract your mortgage interest, to get your taxable incomeDivide your NOI by your debt service to get your debt coverage ratio (tells you how many times will your NOI will cover your debt/mortgage payment).

You should be looking at cap rates for a better idea of what you should be paying for it.

Producing the documents from what I understand is not difficult.  

A 20 cap? 

It is far more difficult than it seems/being promoted.

Depending on where you look, it can be difficult. 

You can do more bedrooms as well as commercial gatherings with a "type B' permit, but type b permits are much more costly and difficult to obtain.

Easy clients are subsidizing difficult clients.