Investors use cap rate to estimate their potential ROI (return on investment) for a particular asset.In a simplified definition, the cap rate calculates a property’s natural rate of return in a single year by dividing its annual net operating income (NOI) by its purchase price.

Is there a simplified checklist or video that anybody can recommend.

Now, since this is so, it's a great temptation to simplify the issues under the illusion that if you simplify them enough, people will recognize them.

Assuming I can simplify the billing process.

@Nathan Caffero  Deciding to invest in syndication may sound like you are simplifying your life, and in many ways you, are because you are having others do most of the heavy lifting. 

This is rather simplified but hypothetically, you would defer the taxes if the code allowed for this.James Storey, CCIM

The relationship is key because it saves money in the long run and simplifies our process by knowing who to contact and they understand our business.  

Am I thinking about that correctly and the examples are not including interest to simplify the example?

P.S. yes you are right I have excluded lots of additional costs to simplify the question.

And the borrower will be paying mortgage on the $154K loan going forward for 30 years.The numbers may be simplified here but hopefully this helps you understand how it flows using some values.