I don't see how the CAP Rate compresses 2 more points from here - do you?  

Originally posted by @Ian Walsh:No one knows exactly when but we will have to keep an eye on what impact rising interest rates will have. interest rates are already rising they just went up 25 bips yesterday to a whopping 1.75 prime rate.. and HML as you know the rates have been compressed because of competition at least on the west coast and other markets.

Tony Robbins says that people hire him to compress decades into days and to avoid some of the mistakes he has learned along the way. 

It will be interesting to see what 2024 brings as the real estate market seems compressed with limited supply, still experiencing strong demand but people can only afford so much. 

When mine compresses 1% more, I'm getting out of my market.

In multifamily, I'd say yes absolutely, unless there's a larger market trend that is compressing CAP rates, you'd expect that 20% increase in property value to come with roughly a 20% increase in rents, because CAP rates stay the same.

With today's compressed cap rates, sometimes pricing goes so high that LTV is limited to a lower amount simply because you hit your DSCR limit before you got to the 75% (or whatever number they were at first willing to quote).

"Patient" is the watchword.Most likely when the overnight rate is increased around about July-Sep, there will be some compression in the yield curve... so the full impact on the 10y may not be immediately obvious.

As the market started to cap rate compress the property naturally increased in value and with reducing costs, increasing rent growth, and lower vacancy the sponsor had a very nice payoff on the back end.These days most of those properties are gone for multifamily.

The only reason to invest out of state is if your area has high cap rate compression.