Good return on a single family home

[Anthony Harris]

Hi,

had a question for my buy and hold investors. I'm trying to come up with an offer on a place that currently rents @ $850 per month. Tenant pays all utilities. house appears to need nothing. Ask price is $99,000 but owner will walk away with $85k. So, my question is what do you look for as far as ROI on a single family. Based on my calc at $850 a month for $85,000. I'm looking at roughly 7%return. But I've heard that 10-15% is where I should be. Any thoughts? Thanks!