Cash on Cash Rate of return?

[Scott Ehmer]

What rate of return are most real estate investors looking for(COC)?

Lets say you have a 100k cash investment in a property, what net return are you expecting to get? For this instance, lets assume you are also getting a 3% increase in capital value each year, and your rate of return increases 3% each year. I know many markets where your COC return is going to be 3.5-4.5% and you will get a minimum appreciation rate of 3%. Would this market interest you, or is that falling short?