Cash on Cash ROI - Cap Rate doesnt make sense

[Ahmad Gul]

Hello,

I have been trying to run numbers in Greater Seattle market and the CAP rate is barely 2%. What am I missing or is it that this market is way too expensive for buy and hold strategy.

I have found a property on MLS for &290k asking. In best case scenario if I can rent it out for $2K a month, I make $1,593 a year. Yes, no kidding.

Is it because the housing prices are too high or am I not looking at the numbers correctly?

Cheers!