Bear in mind that CAP rate applies only to Commercial RE.Better factor is CoC [Cash on Cash] that is for residential too, here you have to include NOI in equation.

In my market, you could put $100k down on three B SFHs and get close to that number- you'd get to add solid and consistent appreciation, nice neighborhoods, zero crime to the equation as well. 

I don't mind wholesaler, but they should not equate to scammers.

@Jack B.How does having less debt equate to less risk?

(Usually 7-10 years is plenty of time to appreciate, but give the Great Recession of 2008-09, I’m adding a few extra years to the equation.)

My entire portfolio equates to 4 mortgages plus my personal home. 

I found the deal, was paid $35/hr to oversee the rehab, sold it as the Realtor on the back end and got 50% of the profit (which equated to $11k to me on the $129k sale, plus commission).

On the other hand if you took this same scenario and are purchasing this property using an FHA loan where you are only putting down 3.5% which equates to only 6k cash down with a ROI of 3% earning you $180 annually.

I get to spend like a drunken sailor as long as the primary residence isn't in the equation!!!

It certainly is possible to use conventional lending but probably not likely in most successful equations.