With all due respect, you’re clearly not experienced in real estate investment. The whole idea that “as long as you make more than the interest you’re paying you have a good thing going” is the kind of nonsense that leads people to believe that interest-only loans are the path to real estate riches.
I don’t really care if the owner of my property paid for it in cash and doesn’t have a mortgage. The bottom line is that I’m renting out a place that could cost well over a million USD to buy for just $2,100 USD/month. I don’t have to worry about its inflated price, the fact that like all properties here, it will deteriorate fairly rapidly, shitty neighbors, etc. I can leave at the end of my lease and move on to a newer “luxury” property without any risk and minimal hassle.
A “good” cap rate is generally considered to be a 8-12%, although there are a number of factors and it could reasonably go a bit lower.
But a 2-3% cap rate? That’s a joke.