Additionally, and almost more importantly, you need to know your lender's DSCR, since many commercial loans are limited by DSCR, not LTV (although an 11% cap rate is much higher than typical).You have no reserves built into cash needs assumptions, which sounds risky to me, but I don't know the property or market.Generally, my sentiment is the lower the rent, the more frequent and higher cost each turnover is.  

In spite of bond price charts, precious metals price charts, stock charts, housing charts, interest rates and consumer sentiment all screaming that a correction should already be underway, it could still take several weeks, months or even years before the bottom inevitably falls out.

I don't agree with this sentiment.

The real issue that causes poor investment sentiment in Chicago is the poor financial health of the City. 

I second the sentiment of Account Closed.  

Thanks for the sentiment.

Martin I agree with you on the expenses sentiment.

I echo the sentiment of others who have replied that leverage is usually the better route to take then going all in with your own cash.

You need only control it - not own it.That said, I'll echo @Abi Wegman's sentiments: delay gratification now to increase the yield of your future harvest!

The rest of the state will slowly follow suit once our Democrat governer is elected out of office.The work force is highly skilled and manufacturing centric, but the union mentality has tarnished things since there's an entitlement sentiment among the blue collar workers.