Using the four square methid for Alalyzing - 7% Is it worth it?

[Thomas Kiernicki]

Hi everyone, I just started investing in real-estate about a year a go. I have a single family home that is paid off, a duplex that has a mortgage, and I manage my parents quadplex. There all doing great and I need another property (just for the sake of having a project to do) but lack the cash down payment. I own my own home and decided to get a heloc at 3.9% which opens up around 84,000. I have found a few properties that I really like and think would be a good investment. The problem that I am having is that when I use the four square method for analyzing rental properties I am getting a cash on cash return of about 6 to 7%. Ideally I would like to see 12% or more. I added one field to the expenses category which is the Heloc payment and that definitely changes the bottom line when doing the analysis. I know many of you utilize this method but what is your return goal? I feel like I am missing something because the ROI is not as high as I expect. Any Advice? am I expecting to much?