I am trying to figure out what should drive my next real estate investment decision - do I give more importance to cash flow or Cap Rate? Below are the numbers of my first real estate investment. Looking back, should I have done this deal?

Bought brand new single family house in a new subdivision - 2400 sq ft, $350,000 price

Added a concrete pad/patio in backyard for $2500, radon gas mitigation system for $1500 - total improvements $4000

Rented out for two years, $2425 per month rent.

Operating expenses includes property tax, property insurance, HOA, 3% of rent as vacancy rate, 3% of rent as maintenance reserve, interest on mortgage.

monthly cashflow year 1: $2200

monthly cashflow year 2: $1700 (as property tax of $500 assessed after year 1)

Cash on Cash returns:

year 1: $21.29%

year 2: $13.15%

Cap Rate:

year 1: 7.55%

year 2: 5.7%

I read that average cap rate should be between 8% and 10% for a reasonably good deal. Looking back, would this have been a good deal?

Thanks

Parag