$500 month cash flow or at least 20% return on investment???

[Skip Gilliam]

 I've been spending a lot of time reading up on buying rentals here on BP and other sites and I've seen a few blogs and articles with the claim that some investors won't buy unless they are getting $500 monthly cash flow, or another figure I've seen a lot of is not buying unless you get a 20% return on money invested and the rule of 50% of rent to expenses -mortgage. Basically the question is, how is it possible to get these returns??? The math doesn't seem to add up with house and rent prices in my area anyway. 

Example: a house I'm looking at now 3bedroom 2 bath listed at $119000 (close to market value according to what has sold) even if I purchase it for 20% below market value as suggested that is $95,200. Rent on nearby homes in same neighborhood are $1200-$1300 max for similar house. So $76000 financed after a 20% down payment would have a mortgage of about $410 at 5% interest rate. $600 left over after the 50% guidline - $410 for mortgage payment only leaves $190 cash flow per month x 12 is  $2280 divided by investment of $19000 only comes out to a 12% return. That's not even counting on any of the costs to splash on a little paint and spruce the place up a bit with minimal costs. 

Just seems so far fetched for $500 a month cash flow or 20% return on every property. 

How many of you investors are really pulling in those numbers? 

Thanks for any information?