Have you adjusted your expected ROI?

[Jonathan Sher]

Hello BP Fans, over the last 4 years, my partner and I have been able to acquire 16 single family properties around the Saint Louis area. We'd like to continue buying real estate, but the way prices have increased and the lack of inventory, margins are being squeezed on newer acquisitions. Houses we were buying 2-3 years ago, we were purchasing for 2% of the monthly rent ($800 would be $40,000) now that number is looking more like 1.2-1.4 

So, my question is, have you guys been facing reality and continue to buy with these smaller cash flow returns? Unfortunately the areas of town where the cash flow numbers on paper are healthy, are areas you do not want to enter. Would you guys continue to buy if prices increase even more?