Looking for Input - Where to get better returns on Equity

[Matt S.]

Hi All-

I'm a newbie real estate investor looking for some input. I bought a condo in Brooklyn back in 2011 that has seen significant appreciation over the past 6 years. It was my primary residence for up until last year when I decided to rent it out and live elsewhere. It's currently generating annual cash flow of about $14K per year. Initially, I thought this was awesome, but eventually (mostly due to bigger pockets forums), I realized this is terrible return on my equity. I have about $750K in equity, so that's less than a 2% return.

I'm now looking to sell the condo and redeploy the cash into higher return properties. Prior to the realization that I was earning such a small return, I was looking at investing in SFH or small MFH in Indianapolis/Dayton. I was also looking at turnkey in these areas. These strategies would have required $20K to $80K depending on property/rehab. My thought was that I would do one or two of these to gain some experience. 

Now, with potentially more capital, I'm wondering if my strategy should change and if there are other options I should now be looking at? What would you do if you were in my shoes? What would you NOT do?

Given that I'm only earning 2% right now, I'm looking for cash flow that will give me a minimum 8% CoC return. I'm thinking this level of returns will keep me in A/B areas with less risk. Any input/thoughts would be appreciated.

Thanks!