Is a 7% cap rate good?

Yes, in most markets. A 7% cap rate is above the 4 to 6% typical of major metros and produces enough net operating income to come close to carrying a loan with 25% down. On a $500,000 property it is $35,000 of NOI, about $4,650 in monthly rent under typical expenses.

Seven percent is where income investors live: mid-priced and secondary markets, small multifamily in growing cities. Every $1,000 of NOI is worth about $14,286 at this cap rate.

It still sits just under the cost of money at today's rates. A 30-year loan at 7.25% costs about 8.2% of the balance a year including principal, so a 7% property has slightly negative leverage. Verify that the 7% includes vacancy, management and reserves; a listing's 7% without them is often a 5% property.