historic cash-on-cash returns for C class

[Mike Dymski]

I wish I knew more about historic cash-on-cash returns for C class apartments. I know the market is hot right now and cap rates are compressed but with low interest rates, it may or may not still be a good time to invest. I have a 25 unit apartment, 2 duplexes and a single family home. I am blessed to own the duplexes and single family home free and clear and debating about borrowing on them to fund another apartment. There are 20 units for sale in my existing complex where I can get approximately 10% cap, 21% cash-on-cash and 27% NOI less interest (I call this IRR). That seems good regardless of region or market conditions. Let me know if anyone has historic statistics or experience with C class cash-on-cash returns in the southeast to provide a benchmark. I am switching from flipping homes to holding multifamily...need something more passive; so, I am getting up to speed on this space in the market. I'd feel better about buying in a hot market if I had some perspective on cash-on-cash expectations in a normal market. My guess is that I am looking at properties and in markets that are not that susceptible to large swings, good or bad, and the returns above illustrate that statement.