Hi Steve, we have to be careful not to get bamboozled with numbers here. Yes WRAPs are designed to produce cash flow, as opposed to ending up in a an asset rich, cash poor scenario that most new investors find them selves in. It is important to note here wealth is cash FLOW not cash.
So: 1. OK. 2. OK. 3.I bought HARD. In most cases at 15%-20% discount, then had a registered valuation done by QV which in most cases was about the original asking price of the property, then expecting my purchaser to qualify for a conventional bank loan in 3 years (and settle then) I added 3 X 8% (a reasonable capital gain)to Reg val. and that became my sale price. You do the sums. Remember I put no money in at all.
Cheers
JK