Cap Rate on Multi-Family Property

[Mark Gliebe]

What is a good cap rate on a 20 unit apartment complex close to 2 universities in a highly desirable and rentable area in Nashville, TN?  Is 6% low, 8% average and 10% high?  Forgive my ignorance but what is that based on, yearly gross rent?  More specifically, at 20 units and they each rent for $1500/mo, that is $30,000 total monthly and multiplied by 12 equals $360,000/yr gross rent.  Is $4 mil purchase price at a 9% cap rate good?  Being in one of the most desirable neighborhoods and rental areas of the city, how low could you go on cap rate or said a different way how high could you go purchase price?