Advice for an investor in Colorado

[James Free]

I live in the Denver, Colorado area, where values have been increasing at 10%/year for three years, single-family homes can hardly be found for under $300k anywhere, and there seem to be no multi-family units for sale within a hundred miles. I am ready to add property, but I’m not sure where the value is. Lenders want 25% down, and with that my cash flow on a single-family seems like a poor value for the investment.

Ballparking a $225k loan on a $300k property renting for $2k/month with a 10% management fee and $50 HOA dues (all typical here), it feels like I can't hope to cash flow more than $400/month even with 100% occupancy and zero repair costs. On a $75k investment, that's a paltry return. After taxes (my day job pays well; high bracket), it's even less. The real value would be in equity growth, but it feels like the local market has to pause soon, or even go backwards some.

I have basically two questions.

First, if I were to look at buying out of state and using a management company, how do I decide where? Suggestions?

Second, what kind of rate of return would experienced investors expect to get in my area? Am I doing something wrong with my math?