Because your principle and interest payment is probably hovering around $2,800/month, not including property taxes and insurance, maintenance and any allowance for capex.But forgetting about cashflow, your return, even if had NO expenses or payments of any kind would be around 3.6% based on a valuation of $1.3m.  

Would any of you guys take a deal with this low of a return?

I waited until I knew enough about investing, to reduce my risk, before I pulled the trigger and made my first purchase.I'm taking massive action to acquire properties over the next 5-6 years and take advantage of the low interest rates.

Gino literally wrote the book on mom and pop apartments....Wheelbarrow Profits.Look for...Below market rentsOvergrown or not maintained landscapingDeferred maintenance on the exterior facadeNo online presence or marketing (word of mouth or signage only)All white interior paint schemesDated lighting and plumbing fixtures100% occupancy (can suggest below market rents)All rents in increments of $25 (a lot of money to be made in smaller increments)2 - 10 year residents at rent rates below new tenantsNo late fees in the P&LSelf-managing (tiring)Self-maintenance (a lot of work)

Am I low???

You have very low end apartments along with higher end homes.

Lots of people pick up investment properties without considering the reserves needed for maintenance.

I'm curious: is FHA203k strictly for owner-occupiers, just like the other low deposit FHA ones?...

Time and energy are valuable commodities so if you don't have the desire to do hands-on rehab work or manage properties, vet tenants, handle maintenance issues etc, then self-managing or flipping may not be for you.

Also - when calculating your cash flow, be sure to account for property management costs, vacancy, maintenance, and especially cap-ex.