8%-10% is a good reference point, I'm curious what your opinion would be as to a fair rate?

This is simply my professional opinion based on first hand knowledge of the area and buyer feedback.

Could any local share their honest opinion on living and investing in Tacoma? 

I started a Partnership with some friends and relatives who mainly are Stock Market Investors.The purpose of the Partnership, in this case an LLC, was to purchase a $1.5 Million 3 Family in Brooklyn, All Cash.3 months ago I told everyone to pull out their cash in the Stock Market.They completed their stock sales a few weeks ahead of the Market falling off the cliff.I then closed on the 3 Family at a very good Price, collected a $40k buyer's commission as I am also the Buyer Broker, and just finished renting the 3 Units, signing the last apt lease in a few days, getting approximately $6k per month in Cash Flow for the 1st year.Not only that, I am securing an Investment HELOC at a 50% LTV, so roughly $750k, which I can use to investing in the Stock Market.I had already anticipated the fall of the Market as the inevitable Corporate Tax breaks had to wear off eventually.There just isn't enough consumers that benefited, in my opinion, therefore Corporate Revenues cannot increase and profits has to either stabilize as the max Corporate Tax breaks levels off.Really, only one way to go.I am anticipating the decline to last for a while.As an Trader, however, I will eventually buy long term growth stocks but also hedge it with PUTs in case I get in a bit too early.My friends and relatives are ecstatic as they probably saved a decline in their net worth by as much as a $1 Million.BTW, there is an old saying, "It is easier to make the 1st Million than it is to keep the 1st Million."

In my opinion, you can't establish the basis more than what you paid for the property.

You will not get a better return with rentals, unless you are buying junk, with flipping you might but it would be a big risk and in my opinion not worth it when you have a great guaranteed return at your fingertips.A penny saved is a penny earned.

A man convinced against his will is of the same opinion still !

The opinion is my own...

Within the last 2-3 years, real estate investing has sparked a big interest in me and I know this is one of the main routes I want to pursue to make a living.

I would put it into multifamily.  10% COC is unrealistic here in Central Oregon in my opinion or at least my abilities, but I think you could by something with under performing rents and then over the coarse of a year or two raise them so you are getting 10% on your 450k,  That would be using leverage.