I'm still an active buyer in Houston, thoguh it's getting VERY HARD to buy as there is SOOOO much money chasing very few deals so CAP rates have been compressed. 

I don't have my #s handy at the moment but off the cuff, the reality in this market is such that by the time you factor in make ready reno, your 1% is compressed closer to the .7-.8 range.

My last tenants brought in German cockroaches.I advised her to use harris cockroach tablets and roach motels.I advised her to set off bug bombs.I left4 in linen closet.she left keys Sept 10 and packed up a airstream trailer.She said she might have to rent a truck and return as garage was half full w cardboard a big bags garbage.3 cans of recycles and garbage.A compresser grease rags.Tenants broke up husband left for Vegas in beginning of Aug.He called me Aug 30 and verbally gave 30 day notice and by text.Previous tenants lease expired oct1 2018.House was not left clean as I had 3 girls cleaning before aswell as myself.I have a cleaning service.HOUSE WAS PRISTINE WINDOWS AND SCREENS CLEAN.Refrigerator was full aswell as pantry.empty bottles and jar of grease as well as a pot of slimy water left under sink.while female tenant was recovering from surgery in Palm springs ca.I had to go water 3 stainless steel troughs w bamboo as heat was causing bamboo to die.Female tenant had a infection from surgery.

If the market gets overheated (which is happening now in most markets), cap rates will compress enough that the market begins overpaying.

Cap rates have been compressed as prices have continued to rise, but I know there are deals within and even outside of those ranges you state depending on what you are looking for when considering passive versus active investing. 

But here are the current rates and my favorite product so you can underwrite your deals: HML is growing in market share, which has compressed the rates over the last year or two.

From a lending perspective, the industry is still very active, with certain areas feeling the compression more than others.

We have been able to purchase a couple of facilities in Texas where we still have very compressed cap rates in storage.  

The reason cap rates are compressed is due to the huge flows of money to the space and the amazing tax benefits.If you are willing to live in another multi, then your strategy is idealBest of luckGino

For example, the condo market in NYC, the broader housing market in London and price compression in Toronto.