Cap rate and Cash on Cash correlation

[Jared Murphy]

Hello,

I'm new to real estate investing and have been analysis a hand full of deals.  From what I've learned so far the cap rate in my area is between 5.5-6%  As I run the numbers on a 38 unit apartment complex with a cap rate of 5.96 and 25% down I am only showing a 6.71% cash on cash return.  This seems like a low return on money into the deal and my question is it typical to see lower cash on cash return with lower cap rates?  

Thanks

Jared