Want to understand RE market in USA (I'm Canadian)

[Abe Homulo]

Hi bigger pockets,

I am an RE owner in Ontario, Canada. I encountered bigger pocket a month ago, and have been following, reading, and enjoying myself here. 

I come across many investors in BP referring to multifamily/residential rental deals they are interested/closing at an absurd returns and prices. I see a lot of 7-8%, even double digit capitalization rate properties, which are beyond unimaginable returns in Canada. In the city I live in Canada, Waterloo, any capitalization rate 5-5.25%, excluding CapEx is considered a "deal". Pretty much any RE on market with 4.75%+ cap will get sold quickly. I am just wondering are these real numbers investors pay or I am missing out on hidden costs or type of deal (such as just purchasing building only, on a rented land).

For example, I just closed a deal few months ago, with 5000 rent, operating cost 1600 (utility, p tax, minor maintenance) at 750k. at 5.4% cap, this isn't a bad deal here. Even if you go to smaller towns with 5000-7000 people, with drug problems, cap rate wont go over 7~7.5% here. Is there really that much disparity between Canadian and USA RE market? Appreciate any opinion that will shine light on this :)