Mechanicals, roofs etc. can be towards the end of their useful life and pass inspection but then the cap ex can't be absorbed in many of these C/D neighborhoods.

Watch for Market DisruptionsIf Blackstone’s decision is tied to economic trends, real estate investors should prepare for potential shifts in:✔ Cap rates and valuations – More institutional demand could drive prices higher.✔ Commercial real estate trends – Certain sectors, like office space, may continue to struggle while industrial and multifamily thrive.How to Stay AheadFor BiggerPockets investors, the key takeaway is to stay informed and proactive.

There are many metrics out there that investors like to track (internal rate of return, capitalization "cap" rate, and so on).

I also remember when cap rates were always nine or higher.

Think $1M-$3M deals, $30-$60k/annual cash flow, 6-8% caps, and 10% returns.

What type of cap rate is usual for such places ?

To analyze deals effectively, focus on key metrics like cash-on-cash return, cap rate, rental yield, and expense ratios.

If the index underperforms—or if caps and participation rates limit returns—you might not get the growth you expected.4.Other Funding OptionsFor most real estate investors, it’s worth comparing mortgages, HELOCs, or partnerships.

If you’re not calculating cash flow, cap rates, and ROI, you’re flying blind.

With those kinds of rents ($5,800 between the 2), even with a 9% cap rate, in my opinion those properties should collectively appraise for nearly $500k.