Is the GTA profitable at current price levels?

[Ryan Teixeira]

Hi there, I'm new here and relatively new to real estate investing in general.  I'm not trying to be a downer by asking this, but as someone wanting to jump into the game, I have some big concerns regarding buying now and the ability of GTA (and outlying) properties to produce cash flow. 

How do landlords cashflow in the GTA?

It seems that since property values are so high, and rents are so low (plus rent control), that cap rates and total ROI are SO LOW for Canadian properties.

BiggerPockets logic points towards a 2% gross income / purchase price ratio, but that is nowhere to be found up here.

Example: I have been looking at Hamilton Duplexes.
Purchase price: ~$200-230k
Gross rent: ~$1800-2000 per month

Or approx. 0.87% gross rent / property value.

Quick valuation of Cash-on-Cash seems approx 5% to me, which doesn't seem good at all.

Are investors seeing better Cash-on-Cash than this? What am i mising here?