In 2009 we have a cap rate of 8-9% for certain asset class and the interest rate is 3%, this gap is actually one that makes you money.However, and this is the big however if cap rate is falling high enough (aka) valuation going up too high too fast because of overbidding (such as in 2020 era), then even without an interest rate hike, your project risk profile is way higher because your upside is way limited. 

If you use a Cap rate of 7%, the $702 cash flow on one unit becomes $10,000 added value. 

These numbers are only going to trend higher, for as long as the Fed can put a cap on this "unemployment" rate.

Where I am you would have a sweet deal if you got a cap rate of 7%, $94k per door is a sweet deal. 

My question is - does the 7 feet per person equilibrium rule apply to total NRSF in the 3 mile or can that be broken down by class (cc vs non cc, facility age, etc) and the 7 rule applied as a cap to each individual class?

Also look at property tax rates, how often properties are re-assessed and if there's a cap on property tax increases.

Quick update: Rockaway Beach OR has instituted a CAP on nightly vacation rental permits.

I think we could all agree there are basically three answers:A) Stay the course - keep adding 10 bps for each year held based on stabilized market cap rateB) Take a little risk - use the current market stabilized cap as the exit cap tooC) Throw caution to the wind - use a cap rate that is less than the current market cap (*If you pick this answer what method are you using to predict a cap rate)Which answer would you pick and why?

We are continuously improving not just maintaining it.Yes, for sure I'm going to put a Cap Ex and repair percentage per month in my expense calculations.

Just recently the city (rightly) instituted a CAP on vacation rentals.