So I have a few questions regarding investing into a multi family real estate property. Why is the cap rate so low for all the properties? For example, I'm going to use a current real estate listing:

The property costs: 5,875,000 . It has 70 units and the average occupancy rate is 95 percent.

So the cap rate is 8.5. Which means that if you calculate that 5,875,000 * .085 = 499,375 Meaning that's the expected overall income for one year. Why in heavens is this so low? The building has 70 UNITS.. If your getting income from 70 different apartments shouldn't that be substantially higher? Lets say each unit pays 1500 just to be fair.. 70 * 1500= 105,000 in one month and for a year 105,000 * 12= 1,260,000. Shouldn't this building be netting at least somewhere around a million after taxes and expenses? Someone please shed me some light into this