Even further, the top 1%, or the top the top 90 agents controlled 95% of the market at 57,000 sides.So that just illustrates of those 9,000 agents in your market...how little business almost all of them are doing.  

However, if you go outside the border I just illustrated, you will notice a drastic difference in the area.

I only mentioned the other fees as an illustration. 

Thanks again, John While I'm here and am playing around with how to post pictures on this forum, I found some better pics to illustrate what I'm talking about.

One way to look at it is this.25% of $138,000 = 32,500 (your DP) 32,500/70(CF)= 464 months it will take to make a profit464/12 months or one year = 39.5 years before you make a profit on your initial investment.I understand this math is a little wonky and your loan is probably only 30 years but i think this illustrates the point.Im assuming theres no value add component or a way for you to house hack?

In other words, people are willing to pay less for that same set of cash flows because they can buy less risky cash flows in the US Treasury bond for a similar price.This is just one example, but the point was to illustrate that there' s a lot of factors how your multi-family will be valued. 

This compression is being driven by demand which of course is illustrated by the amount of capital being invested into a particular market.

He did briefly illustrate it with some numbers.I'm not taking sides on his argument, just presenting it.

Only looking at "amount invested" can be deceiving.Let me illustrate....You may see a deal where the sponsor says they are putting $250K in the deal. 

Purchase price: $108,000 Cash invested: $17,959 Sale price: $154,900 I purchased this home more to illustrate excellent knowledge and predictability to my potential investor partners than to profit, but there was some of that, too!