Cash flow and Cash on Cash Return- when is less acceptable?

[Sherry Siegert]

We've heard the typical 1% rule and the grand slam 15% CoC return, but under what conditions would you go for a deal when these are not met?

Long term investor, not looking to quit my job or put a lot of effort in...looking at MFH and the numbers just don't add up but these properties are flying off the shelf so I am wondering if I am missing something?

Exhibit A: 4 unit for 405K, 25% down, rents ~3200 (but can possibly hit 4000), property tax 2.7%, and all other things accounted for (mgmt, CapEx, etc) our cash on cash return is less than 1%- why would someone buy this property? And why am I being asked to go over asking so that I may have a chance? I'm not a newbie but I am no professional either. Looking for your thoughts.