The issue that I see is that cap rates are already compressed for those buildings that making the numbers work is hard.

My feedback: - the AZ market is really competitive and margins here are very compressed compared to other parts of the country and compared to bigger pockets rules of thumb  - Through common modes of acquisition (MLS, agents, wholesale emails), you will not find much better margin than this in our market.  

Great for compression, bad for tension.

Unless the piping was blown out with compressed air, there’s a possibility of water pockets that could have frozen and split the pipes.

Cap rate in Phoenix are compressed right now.  

Cap rates are compressing and interest rates are rising.

And where rent compression is real in a down market, one can do a relatively good job of planning for it upfront and just not buy the deal if it won't pencil!

It has finally gotten on the radar for large multi family buyers over the last two years which has led to extreme cap rate compression (even over that shown by the market overall).

Which leads to investors accepting less return thus compressing cap rates.

Even though they had little cash flow they had big equity gains that way surpassed what the cash flow could ever be in those areas.If you buy at the right time in the cycle then just by buying and holding you can get increased equity through rising values with comparable sales with residential and cap rate compression on the commercial side.