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What is the actual return on investment in commercial properties...?


Hi
I'm considering investing in a commercial property in the GTA (Greater Toronto Area) and have a question on the actual return on this investment. Assuming that I can purchase a property with 7% cap rate:
- Who is generally respnsible for paying the property tax? Me (landlord) or the tenant.
- I set up the mortgage amount so that the investment is cash flow neutral, i.e. the annual net cash flow from the property equals the mortgage payment. The return on investment looks decent (~ 15% annually) until I factor in a 5% sales commission on selling the property. The ROI then goes down to about 7% annually. Any ideas on how to extract the equity out of a real estate investment without actually selling it?

Quite a bit depending on the purchase price and the selling price...

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