Cash-on-cash return and Neighborhood Rating

[Marian L Claville]

In an effort to improve my real estate investing skills and better serve my buyers I have a couple of questions:

1. For my buy and hold people, what is a good cash-on-cash return on rental property? I know the higher the better but what is the minimum or rule of thumb?

2. I hear a lot of investors say "I only invest in B or C neighborhoods." What is the formula for rating neighborhoods?