What Cap Rate do you shoot for in blue collar rental markets?

[Account Closed]

Assuming no significant future appreciation, in a C class area(or whatever class a blue collar rental market is), what's the cap rate you shoot for for a 2-4 plex?

The area I'm most interested in right now is a near Chicago suburb and I think I can get a 10% cap rate if I find a good deal on a distressed property and do a basic no frills rehab to get it rent ready. Since I'm inexperienced im not sure if I'll even be able to get anything that will give me the 10% cap rate, I'm only hopeful I'll be able to find something. Nothing in the area on the MLS right now is a deal that would work for me.

So I guess I have two questions. What cap rate would you shoot for in a stable C class rental neighborhood(they just got a Walmart and a new community center this year). And how much % cheaper than the MLS do you expect to find if you buy direct from a distressed seller?

Thanks in advance.

[Account Closed]

But if market cap rates are over ten you all will be paying TOO much.  That's not very smart investing.  You should shoot for better than market but if you don't have cap rate comps or understand them you'll probably make a bad deal.