Market Report on Multifamily in 2021Good news: it’s a great sectorBad: cap rate compression on its way

The air pocket compresses a bit.

Try to cluster the sales into as compressed a time frame as possible. 

@Jeff Moore both the rising interest rates and potential cap rate expansion (as opposed to the compression we have been seeing the past 5+ years) as we head into a recession could impact values.

C-class multifamily was a better opportunity in years past, before all of the more recent cap rate compression and increases in costs of materials and labor. 

Now you have the higher cash flow and cap rate you couldn't find in an already performing product.In most asset classes and cycles the time is gone where you buy at  a high cap rate and let compression do it's thing.

It's not uncommon during rising rates to feel investment compressions - that's pretty normal, if you're wanting larger returns then you should aim for lower property classes but those come with their own inherent risks (maintenance, tenants, etc.) 

We frequently run cabinets first in order to compress our critical path and get to countertop fabrication faster than if we waited on the floors, then did the cabinets, then did the countertops.

@Jeffrey Allen This might not answer your question exactly, but cashflow tends to compress a bit the closer you get to Boston proper.

I love the compress 5 years into 1 year plan, but keep in mind it's way easier to make money in the long run with RE.