There are plenty of examples where it would make sense to have higher cost of funds than current cap rate.Examples such as: Value add property with low current cap rate, short term / mini perm financing with expectation of cap rate improvement over the duration of the financing, 'path of progress' real estate where rental growth rates can reasonably be assumed to increase 'x' percentage over the interim of the financing period, financing a development that will be repurposed, low leverage which offsets financing costs, etcIn addition to the reasons why CAP rate can be lower than financing costs, the math also works out that CAP Rate < Interest Rate can still be profitable.Example: Suppose you don't have the capital to pay cash for a $1,000,000 property.

All good websites tend to see exponential growth over time...That said I would be interested in that data as well :)

You don't want a water leak leading to mold growth.....

There are proposals in US Congress to eliminate the IRS Section 1031 Tax Free Exchanges, which have been in the tax cade since 1924.http://www.realtor.org/news-releases/2015/07/nar-survey-finds-like-kind-exchanges-promote-job-economic-growth

But shunning a person for having a home office or not already having 100 deals under their belt both stifens growth, and keeps people who could be game changers out of the game all together.  

It's slower growth but when all your friends are filing bankruptcy in about 12 years at the next cycle turn, you will weather the storm. 

Despite the success we are having, retail is a tough space and double digit growth rates are very hard to come by these days.

However, I am concerned that the arrangement is stifling my personal growth and money making ability.  

This might make it more of a buy.I tend to look at a property a little differently:  area economics, area growth, jobs, etc. 1stthen I look at the actual cost of the places and average rents for the area I want to buy.Again, my .02Good Luck

The idea is that you want to use the cash to grow the business faster.