I think cap rates will continue to compress, I think rent growth will still happen in select markets, and the Fed will keep rates low.

That's why I created this post because nothing is making sense out there as cap rates keep compressing and financials are not supporting it.You're right, on this deal the rents are a big issue and there is absolutely no room for a $200 - $300 increase and the 10 cap is no help.Do you currently own in MFRs and are you finding returns that meet your criteria in DFW?

This market is so very hot over the past 5 years and CAP rates are extremely compressed.

Mike Palmer and BP friends I would strongly suggest you stay away from th "Flushmate" stuff Its a time bomb,,,its a black plastic pill shaped vessel that collects compressed air on the water refill of the tank They are bad news,,,,if they fail in the middle of the night,,blow out and leak ,,youll have one hell of a problem and an angry client Stick to a reliable tank style toilet like the Kohler,Gerber or Toto and sleep at night,,, DD Los Angeles

I have over a thousand sources nationally from developer companies, property managers, regular owners, other brokerages.I did the larger apartment buildings years ago but they have gotten quite cap compressed so do not make sense for a lot of buyers now.

If you simply buy an asset class at the bottom of the cycle and let rents increases and the cap compress then 1031 off into the next opportunity (ies).

Next, I compress that loss to lease over the next year or two as units get upgraded and leases are brought to market. 

Retail NNN you get the tenants to pay the property taxes. 250,000 off of 2,000,000 is a 12.5% annual pre-tax return.Tougher in multifamily now as that is cap rate compressed heavily in most areas.

SFR Portfolios are emerging in many US markets as caps continue to compress and MF rent appreciation slows.

Cap rates have already compressed anything on the MLS or the auctions.