$1100 – $15 – $140 – $260 =

[spdrun]

$1100 – $15 – $140 – $260 = $685/mo
$685/mo * 12 months = $8220/yr

$8220/$140000 = 5.87% cap rate.

If someone put down $100k cash and got a mortgage for the remainder ($200-250/mo), they’d be cash-flowing decently without much risk of being underwater. If they couldn’t get a small mortgage, a $100k loan would still allow for cash flow.

Try getting 5% or more return from a bank right now.