I can give you CoC returns of 10% from a deal with a cap rate of 5% because of high leverage.

Without proof of execution capability, it may be hard to do on the first one.In any event, what you need to look for is a property that fulfills the Purchase Price + Rehab _less than_ ARV formula, keeping in mind your lender will have a cap at the LTV you can pull.

Brent,  A cap rate is ONLY a ratio of NOI to purchase price.  

.Generally residential 1 to 4 units go by comparable sales instead of the income approach.Having said that you have A,B,C,D location and A,B,C,D age of the building.Generally an building with an A age 1 to 12 years has a CAP rate of around 6.5%, B 13 to 30 about an 8 to 9 CAP,and a C 10 CAP and up,D 40+ years old usually the investor buyer wants a 12 CAP or more going in.You just bought at the wrong time.Do you have the ability to purchase another property that you get an awesome deal on and create a bunch of equity??

In Southern CA, most buy and hold investors are satisfied with a CAP rate of at least 6%.You can also use the 2% rule, which states that the monthly gross rent should be at least 2% of the purchase price. 

A cap on that fee to private folks and a clearly defined service role would be beneficial and I would think, fairly easy.

One more green question concerning your post....What is a CAP rate?

Sure if it was 2011 or even 2013, but today the prices are blown out, too difficult to find a buy at a cap rate that makes good financial sense in TX.

Smaller mountain towns are also putting a cap on the number of vrbo/Airbnb’s they allow.

The reason is they do not want to cash out (on value not cost) somebody that has not created "value" and is trying to cash out because they are getting a cap rate lower based on nothing more than the hot market.