Has The Apartment Market Reached The Peak of It's Cycle?

[Hubert Washington]

My goal is to purchase my first apartment building before the end of 2016 and I have been studying, reading, and listening to everything I can get my hands on. Recently I have come across information from a few different places suggesting that the apartment market is at or near it's peak. As a new investor, I thought it best to reach out and get some feedback from the community. A few specific points that I've heard are:

• Many markets are far into the Expansion stage with Hypersupply being the next phase of the cycle
• CAP rates are compressing
• Great deals are harder to come by
• Many deals selling for more than the NOI warrants or at lower CAP rates
• Moderate to high new construction in many areas
• Many investors going outside of their normal markets to find opportunities
• Interest rate hikes on the horizon

What are your thoughts on the current state of the apartment market? Is now a smart time to get in? What things should investors keep an eye out for? Are there certain strategies that work better in times like this (i.e value adds, repositioning, longer loan maturity)? What are some of the obvious traps that a new investor might miss? Are certain classes better to own in the event of a downturn? Any other relevant advice?

Thanks in advance for all of your valuable insight!

THINK BIG...THINK BIGGER...THINK MASSIVELY!