We are planning to hold it for 5 years and bought a rate cap to cover the entire hold period. 

It is a good deal.If you have a cash neutral property, the tenant via the rent they pay is paying the property tax, insurance, mortgage (principle and interest), maintenance/cap ex, vacancy, PM, and misc.  

Boomers RE investors have made hilarious amounts of wealth in real estate over the last 40 years because 10-Year Treasury bond yields (and therefore - cap rates) have compressed from ~15% in the early 1980’s to ~60bps in 2021.

When the plumber removed the cleanout cap, water started coming out.

The City/County/State rent caps only apply to leases that are being renewed. 

Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

Get a good cap rate basically covers your financing and ideally 20% more for maintanance, prop management fees.

Maintenance/cap ex, insurance, if a rental PM, bookkeeping, misc.The fact you have a loan means 1) leverage 2) equity pay down.In addition, there are tax benefits.So I will do some rough underwriting as an OO non-rental at 95% LTV (because FHA has some undesired consequences that make the 1.5% difference in LTV worth avoiding the FHA).equity paydown: 20% (using OP interest rate at 95% LTV and not counting closing costs). 

need to put some sort of cap on utilities in your next leases.

Or at least what are investors looking for today as far as return and cap rates?