Value can increase via no rent increases if the industry is going through cap rate compression (dropping cap rate will raise value price).5 yr term baloon is almost always killer as in this case.  7 yr better, 10 yr is best.The todo in seller financed deals:- Increase value via increased NOI and hopefully enjoy free increases from industry cap rate compressoin so that when you apply for refinancing, the appraisal will come back so that the LTV being offered (70%, 75% maybe 80%) will cover the balance on the sellers note. 

The cap rate seems to be to compressed would I be wrong

You need to ask around what happens when you buy 40 units after cap  rate compression.

I like the Wack a Mole analogy.. if I think back on my career in this game that started in 75.there were all distinct and different events that perpetuated a slow down or price compression in real estate75.... coming out of VN war  soft economy83 - 85  sky high mortgage and interest rates  ( SL crisis  but a lot of money was made picking up those deals)89 to 92  in bay area  Earth quake and war.. prices in SF and bay area compressed 20 to 50%  ( we have short memories.) but that was also pre high tech.2000  dot com bomb  short lived 2001  Bin laden short lived07 to 2011  global credit crisis worse i have ever seen or I think any one basically living ever saw.. worse than great depression in many areas...

It's getting tougher with compressing cap rates, but I'm staying optimistic and looking daily.

'Too high' is subjective, but we can definitely say prices are rising and returns are compressing. 

We've looked into some of the numbers regarding setting up a functioning field: Rental equipment, store/shop, compressed air supply, climate controlled storage for paintballs, liability insurance, staffing expenses, etc.

Mix of tenants, increase in rents, occupancy levels, cap rate compression for value in the local market with appraisals, length of primary lease terms, etc.    

Thanks,HannahHannah,My suggestion would be to try to find an inexpensive in-class course with a compressed schedule.

Some say it might continue to go like this in a more time compressed fashion.