I don't have any property in Raleigh area yet, but everywhere else I get 300-400 per month on a 100K worth of property.
I don't worry too much about discount I get on a property (purchase price) - I often buy at market value rather than getting a steal. I generally focus on rent ($) and (kind of) renters a property would fetch, cause that always wins in long run.
For numbers, a 100K property giving 300-400 a month after mortgage would give nice double digit CoC return. Then we add Depreciation and principal pay off part of mortgage. Appreciation in price and rent over long term - are icings :)
Also that when I do rough numbers, I only look further if a property is about 1% (in Raleigh area), and that it roughly gives CAP rate of over 8% on conservative number. For a 100K property with 30year note at 5.5% and 2,500 in closing/financing cost would mean that at 6.5-6.75 CAP rate, CoC would be same as CAP rate. And for every .25% delta in CAP rate, CoC would change about 1.1%. So my 8CAP would mean over 12% CoC, and meet 300$ per month target.
