2.75% COC ROI - Is this deal worth it? 315K SFR (New Built)

[Varun Parkash]

Guys, i have been actively hunting down for a SFR property and came up with following analysis after doing BB Rental Property Calculator on a brand new SFR:

COC ROI = 2.78% when i have estimated:

1% Capex, 1% repair, 1% management (which means self-manage)

As per knowledge gathered on BP podcasts, it is advised to go for 12% COC ROI, in today's market, i could have gone in with 7-8%, but these numbers are looking bad.

This leaves me counting on appreciation alone. Is it better to research REIT's or look/wait for another deal, as market continues to remain on the high and this area appreciated 5-6% already in last 9-12 months. Also, speculations remain that market will crash after 3 years by 2021 (been hearing this saga since 2015 and we have been running in a record bull run ever since 2012)