What reversion cap rate to use in 5yr projection?

[Tom Lafferty]

I have an offer out on a 60 unit MF property and would like to hear what others are using for their analysis and projections. I'm in DFW, looking at c class properties. If I'm buying at an 8 or 8.5 cap, wouldn't it be smart to increase it for projecting a cap rate when selling in 4-5 years? My thinking is that interest rates almost certainly will be higher at that point, so cap rates will not be able to stay as low as they are now. I'm seeing a lot of projections that use a 7.5 cap in 5 years and I can't imagine that is likely.

[Tom Lafferty]

, that post was over four years ago.  I definitely try to under promise.  @Josh Stack, I didn't buy that property, but I did buy another shortly after that post. I was WAY off on the reversion cap I used, as the market just kept going crazy.  I projected doubling investors money in five years, but we hit that goal in two years.  I have another one we bought in 2014 that is under contract to sell and will be around the same return in just under two years as well.  

I'm still using conservative exit caps, but it makes it VERY difficult to land anything.  The longer we go in this cycle though, I want to be even more careful.  I've missed out on a LOT of deals and millions of dollars, but I'm ok with that to stay out of even ONE bad deal.