I can see the scenario if you do have a lot of vacancy there will be rental price compression or rent wars between the bigger players..

Cap rates are compressed here and make me want to sit on the sidelines until prices drop substantially and cap rates come up.  

As many Syndicators encourage us to go all in now before Cap rates start to compress, were any of them around in the 1980s and 1990s when Cap rates were 8 to 9% or commercial mortgages were 13%? 

Cost is way off We have a number of preapproved / pre-designed units that compress the timeline down to 1-2 months to design, if you are on San Jose we can have a permit for 532 sf single bedroom unit in 3 weeks (timeline is 3-4 months for custom)

That being said, I would not be encouraging anyone who is living off STR income, to leave their jobs right now, because I would expect margins to compress in 2023 as competition grows. 

@Kalin Stocker cap rates have compressed greatly as interest rates have decreased.

That said, I'd much prefer a significantly higher rate environment as a buyer if it would compress valuations as opposed to the BS low rate valuations we have now.

The economies of scale, tax benefits, loans, cap rate compression, and more!

Gatlinburg seemed to be busier that PF but everything is so compressed there it’s hard to gauge.  

Rates are a bit higher but have compressed quite a bit on top of conventional since Fannie/Freddie have been making those loans harder/less attractive.I ran into a lot of "fake news" on DSCR loans last week at BPCON, so I wanted to offer a different angle.