What is a "good' ROI for annual rental investment property?

[Hank Wolff]

Hi Bigger Pockets! I am an agent, and working with buyers seeking rental investment properties to buy and hold. So much of my market, Vero Beach Florida is starter homes to buy around $250k to rent around $1700/month or affordable condos with condo fees $300-$500/month. I run "real" numbers accounting for vacancy/repairs/insurance/taxes, etc, and there is hardly any profit! Seems like everything is break even basically or up to 5% cash on cash return. There was a condo building with below market condo fees, I have a sold a few because it was the best deal in town at 7%, but now they don't allow rentals first year. Am I missing anything? What are ballpark figures legitimate investors seek?