What's a good IRR on a long term rental?

[Wesley Bryant]

I'm new to real estate investing and was curious what kind of IRRs are realistic to find in the current market? Since the S&P 500 averages around 10% annually I personally don't see a point in investing in a rental that's not going to at least beat that. I found a house that comes out to an IRR of 11-12% when I run the numbers. That's with 20% down and a 7.5% interest rate. It may also be worth noting that this house is over 100 years old(but recently renovated) and in a lower income/higher crime part of Atlanta. Although it appears to be in the process of being gentrified with home prices in that area increasing 72% over the last 5 years. I've heard people talk about getting an IRR around 20% but I'm not sure if that's an outdated target and not as realistic as it may have been in the past? Is 11%-12% a good IRR or should I keep looking for better? Any advice is much appreciated. Thanks!