Often this will be in lower class neighborhoods where that higher rent to value ratio compensates for higher tenant turn over and other related issues.There are places where you will only hit 1% or 0.8% but tenants are low maintenance, properties are in good repair and that kind of return still makes sense.Regardless of which rule you follow, you will still need to analyze the entire deal and determine if it really cash flows.If a property that fits the 0.8% rule cashflows $300 a month and another property that fits the 2% rule cashflows $50 a month, which would you prefer?

One of the posts that was removed, probably because it was an advertisement, mentioned a cap rate below 7%, which is very low compared to other markets.  

Mary, keep in mind that if your target is likely a builder, they don't work on the same seasonal time frame the average home buyer is on.

Passive house building standards are aiming a low but not zero energy costs. 

I agree that 8% is probably low in Houston, especially as we look to the next year.  

yr 2000 or newer, low rehab for $25k or less.  

The lender states that I can refinance after 6 months of seasoning.

The reason why I ask is with the current low interests you can find  10% cash on cash returns, but the purchase prices on the investment are at or approaching the previous bubble peak price. ( 2005-2008) Is this dangerous? 

You can use your seed money to get into rentals, then cash out while rates are really low (and you have a W2), do it again and again (the BRRRR). 

Georgia has some great low cost properties I've seen.