After all things taken into consideration (taxes, expenses, vacancies) what do you guys consider a good deal?

I'm still waiting on my first property but I've heard MFH in Indianapolis are tricky -- mostly due to the numbers looking good on paper but the vacancy factor being the issue.

To evaluate an investment I include property management, possible vacancies, maintenance, and capital reserves.

Would 8% or 7% going forward be high enough vacancy rate for this area and unit type?

You would eliminate virtually all long term risk of market conditions (and losing all your equity), eliminate vacancies, eviction and litigation.  

If nearby rentals have a feature included that your unit lacks, you can expect to have a lower rent and even a longer vacancy to fill the unit.

Vacancies with leverage can be deadly too.

They work for us because the better clientele allows us to keep cost, vacancy and expenses down.

If I was going to get back into the rental game I would only buy A class triple net lease or West coast apartments were vacancy rates are non existent and management is truly professional  not just someone managing 200 doors who may or may not be in bizz next year..And the tenant base is far and away different than what you get in the mid west with sub 800 dollar rents on SFRs...

It may not have a 10% cash on cash return, but it has stable tenants with low vacancy, less turnover, higher caliber tenant etc.