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An Investor is looking to purchase a small mixed use building that is available at a 7% Cap Rate (ROI). He is considering taking out

An Investor is looking to purchase a small mixed use building that is available at a 7% Cap Rate (ROI). He is considering taking out a $1 million loan to purchase the property which would require an annual debt service of $72,000. If the Investor is seeking properties with a year 1 Cash-on-Cash return of 7% or better would this be a good investment? (Assuming Unlevered Cash Flows = NOI)

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