Are Properties Overvalued Frequently?

[Matthew Cartwright]

I have been looking to start a partnership over the past two months for real estate investing. What I am seeing is that properties appear to be way overvalued, i.e. properties that are only generating $7-8k in rents per month are priced approximately $200-300k over what they should be to generate a 10% CoC ROI Y1. My question is am I setting my return goals too high or are properties just that overvalued? I have read that the price listed is just the owner's opinion, but surely they are basing the price on some sort of data. If a businesses true value is derived from all of its future cash flows discounted to present value, then how can some of these owner's be so far off?