I am starting to see some homes though in that price range. 

Knowing the Fort Collins market and it's price points a little bit, it doesn't sound like you're capitalized quite enough to get started flipping, especially when factoring in risk (properties in the $300-400k range will be high risk, not good locations).

Whereas the cap rate on active listings are 5, 6 range.

I was thinking the house would rent for 1200-1350 but it seems now the range is 1000-1200 with 1200 being the highest for the area so may be hard to get.

It sits in the $8,900 range at the moment.

Banks and Credit unions in the 7-9% range. 

Let tenants know you'll keep it between a certain range of X - X in the summer or winter months.

the market is unforgiving right now, and if you buy a random property by looking on Zillow and turn it over to people you don't know to manage, you'll lose money.with respect to your specific question, if the property is safe, clean, and priced correctly, it will rent. but that doesn't mean you'll make money on it. 

I know them well, I like them, and I trust them.My wife and I have purchased a wide range assets from PPR.  

They differ from less than $100k to north of $200k With ARVs in the $100k to $200k range finding lenders to do cash out refinances should not be difficult at all.