I do not understand valuations for small multi-family properties in my market.

[Sam Young]

I am a 25 year vet of commercial real estate brokerage. I have focused on investment sales my entire career, primarily stabilized income producing properties. I acquired my first MF property in 2019 (a four plex) in a 1031 exchange for around a 7% cap rate. I would like to acquire more small MF properties in the $600k to $1.5 million range as I trade out of partnerships in commercial properties. I cannot make any sense of the pricing that people are asking for MF properties in my market. Asking prices for duplexes in the areas that I am interested in run $750k and up. The only way for them to cash flow is run a AirBnB model. Even looking at it for an AirBnB, you have to aggressively underwrite (hope and wish) them to make sense from a cash flow perspective. Forgetting about cash flow for a moment, I cannot justify the pricing even if value appreciation was my only goal. The problem I see with value appreciation is that the values for these properties had a huge value run in the 2019 to 2023 period. Properties on the market today where the asking price is in the high $700k to $900k range for a duplex that would bring rent of $4000-$4400/month for long term rentals. Many of these properties sold for 1/2 of the current asking prices 2 to 4 years ago. Prior to that, the values were relatively flat for years and years. I cant find where the upside is to buy these properties. The "lot value" or redevelopment value is maxed out, the rental income potential is maxed out for the near term or longer. Brokers selling these properties point to single family residential comps to justify the asking prices. Without historically low interest rates again or significant rental increases, what will drive the value of these assets?  What am I missing in analyzing these properties?