Acceptable cash flow and Cap Rates

[Luke Schumacher]

First off I know this is a very subjective question based on your area and personal goals in real-estate.

My market is Colorado.

I was spoiled before values increased and with a 2.6 interest rate and my first rental cash flows $600/m and is a townhome.

I’m looking at numerous opportunities that after all expenses including cap ex, vacancy, and repairs cash flow $150-250 per month with not a ton of opportunity to increase rents for the time being. Cap rate around 7.5-8%, purchase around 120k with traditional loan and down payment 

My goal is cash flow and long term equity play.  Are you guys holding out for higher returns or this this truly as good as it gets right now?

I also only have ability to by a property every year or so unless it’s a SubTo deal so I’m not buying a ton of properties right now.

any insight is great thanks!