'Too high' is subjective, but we can definitely say prices are rising and returns are compressing. 

Here are my thoughts:Your Year-One cash-on-cash return (CoCR) would be about 8.5% ($5K cash out / ($44K down + $15K repairs)).

I was just talking to someone about the market there with how people who are doing fix and flips are seeing some real good returns and changing neighborhoods.

I think most can agree the potential for return on 5 properties as opposed to 1 is much greater.

The return may not be very high but is a bit easier. 

It is the only way for me to cash flow on rental properties without putting $250k down on a single family home.I buy single families out of state and put $15k down and cash flow $200-250/mo.thats very nice cash on cash return!

This way in the worst case scenario you would at least receive any returns before her.

They make an 8% return, like the monthly checks, and the security of and investment secured by real estate. it allows me to purchase properties without graveling to banks, getting appraisals, paying loan fees, and making cash flow without much of my own money. 

I won the last 2 auctions and Wells Fargo didn't accept and returned my EM in both instances.   

I am not finding like Home run deals of 30-40 or more cash on cash returns.