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.