Cap Rate on 28 units (no room for debt service). Who buys these things?

[Ethan Bowen]

So I saw a deal (if you'd call it that). There is a group of older investors ready to retire wanting to sell 7 buildings (4-plexes) on one bock for 2mil. The numbers given to me had a 5.8% NOI. Looking closer, they weren't factoring debt service at all into the expenses. So really the only person going to buy this is someone with pure liquid capitol that would have no debt service.

My question: Is their really a market for things like this? Are their people out their that invest 2mil of their own money into something like this with a 5.8% NOI? Or is this just a pipe dream for the sellers?

Thanks!