@Jennifer C. there is no set answer to what cap rates are trading (i.e. selling) for in today's market. Every market is different and the lower class tenants you go, the higher the cap rates will be (and vice versa).
The reason the lower class properties are higher returns is that you will have less appreciation, more managerial headaches, more vacancy, more repairs needed and more uncollectibles. Yet, if managed correctly you have the potential for higher annual yield (i.e. returns).
Every market is different. Right now in NYC and likely in other major MSA markets (LA, Miami, etc.) cap rates are trading near - and even below - zero! There are a number of reasons (foreign money coming into the US market as a safe place to park money; investors buying for appreciation; investors hoping rents continue to increase and eventually they will turn it into a higher cap rate; and numerous other reasons). I don't follow the Dallas market (and I'm sure there are many sub-markets that are all different), so I cannot speak of the specifics of your area.
However, some properties don't trade based on logic. For example, single family homes and owner occupied multi-families in nicer areas might be more emotionally driven (e.g. families want to be in a certain school system, near employment centers, etc.) more than what the returns are.
There is no answer, but I would recommend you reaching out to investors in your local area and see where they are investing and what returns you can likely come to expect.
Bets of luck!
