Yes, cap rates are compressing but even at mid 5s to 6s, w/a value add strategy, comps below competitors in price / rents and realistic underwriting that expects caps to rise slightly w/increase in interest rates, you can still make a very good return.  

So do both, so you can analyze as many as possible and compress time frame. 

I specifically focus on retail these days but in the past did larger apartment buildings but they are cap rate compressed now for the most part.To find a broker or agent you need to define what it is you are trying to do.My clients minimum purchase 1 million or higher in price.

That way you have 11 years or a 16 year primary term lease that might could be sold at a much lower cap rate years later when the industrial market cycle cap compresses.

Extrapolating that over $700k in income, I'd have to buy $42.5m in multifamily.Even in an area where cap rates are really compressed and you're making $0 cash flow, it'd take about $25m in RE purchases to offset that.

Cap rates have compressed and will hurt some who have paid too much.I am funded, financing waiting, but current sellers are just fishing for idiots, mistating expenses, overpricing, etc.Maybe there are reasonable owners out there, i just have yet to find any!

There are some skills that I suggest every homeowner learns in order to avoid high repair bills (in order I usually do them):-Fix minor roof leaks & repair siding/exterior-Fix water supply leaks with compression fittings or hose clamps if needed-Install lights, replace bad receptacles, switches, or breakers-Install electric water heater if needed-Fix subfloor & sturdy up framing if needed-Fix/replace windows/doors/glass and install locks-Drywall/mud, brush&roll paint-Install floor (floating/tile) and cut/install trim-Install toilets/sinks/cabinets/faucets-install mini split units if no functioning ductwork

These markets tend to 'compress' and limit the ROI/ROE for a rental - so they tend to be more amenable to flipping. 

Without question it is a struggle, and it is making the market far more compressed now than it should be because you people coming trying to scoop up stuff just because it meets some criteria they are seeing on the page in front of them.

As a market is flooded with out of state investors, it will increase prices and compress cap rates.