How tO determine YOUR acceptable CAP rate for a large property?

[Rick L.]

I'm actively searching to purchase a 10+ unit residential property. I'm struggling to determine what acceptable CAP rates (CAP Rate= NOI/Purchase Price) are for particular areas. I realize that CAP rates vary considerable across the country. In New York or Chicago an investor may consider an acceptable cap rate to be 4-8%, but what about smaller markets. Or different neighborhoods or areas within a city.

For instance, I'm struggling to determine appropriate CAP rates for A, B, C class neighborhoods within areas of my local market of St. Louis. Do I need to talk to bankers or appraisers to gain this knowledge?