If you are going to mortgage this property, your return will not

6 and 7% return is based on no mortgage calculation.  You pay $240k and the return will be around 6 to 7%.  If you will borrow the money with 20% down and borrow $192k, then your return will be around 1 to 2%.  That is very low, but you still have positive cash flow.  In this case, I will against this deal.