Is my model too conservative?

[Jeremy Komer]

I currently budget 20% of the rent to capex and maintenance, 10% to vacancy, and target a 10% cocroi calculated as

Total rent less mortgage payment, vacancy, utilities, maintenance and capex devided by down payment and capital improvements required.

Example

Price $250,000

Down payment $62625

Capital improvements $42000

Utilities per Mo $417

Payment per mo $1337

Rents $3400

Lending Fees/costs $5000

Cocroi 6.84%

Am I being way to conservative in this market?

Seems like allot of people are taking really low rates of return like 4-7% or buying things at the pro-forma value ignoring capital investment needed to achieve that.

Which makes me wonder if I'm being too conservative in trying to find my third property and missing part of the picture. Or everyone else is willing to take on much higher amounts of risk than me right now and I should look for a different asset class to invest in right now.

Is a 10% cocroi too agressive in the market at the moment?