What is your current market doing there with cap rate compression and demand??

If they want a compression test because of the addition then you need a soils engineer.

If you are a buyer wanting great cash flow on a stable asset now might be the time to buy with debt cheap before cap rates compress further.

Look at new real estate development, value add turnarounds, buying top quality properties at the low cycle of the asset class so cap rate compression can happen with big equity gains.If you buy something for instance for cash flow for 1,000,000 and it's a 15% return but a big headache and you have 450,000 in 3 years but say no appreciation to speak of.

Cap rates are very compressed right now.

So in your example there is a NOI of $22k and with you being in New Jersey I'm assumming there are compressed CAP rates so let's say its trading at a 6% CAP.

That with compressed cap rates, and interest rates will rise is why I am soo conservative on any MF but thats just my thoughts.

It’s the compressed wood from the 80’s.

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).

Cap rates are compressed.