Spent $3,000 on leads...am I doing this wrong?

[Matt Maluchnik]

I spent about $3,000 in leads and mailings and I've made a few offers using the Rental Calculator that's available as a BiggerPockets member.

I keep looking for a final Cash-On-Cash return of 10-12% year 1 (see example photo). This keeps making my offers really low, sometimes 1/2 market value Ect.... Hence no one accepting.

Am I correct in shooting for this 10-12% number?  These aren't exactly High Appreciating markets..only 1-1.5%/year.  I don't mind spending $$ on the leads to get better, I just need to make sure that my goal of the 10-12% is do-able.