That being said, I don't think we as investors as giving self storage its' due....We have all seen the cap rates in commercial multifamily compress and as a syndicator it has been very challenging to find deals even with operators who have significant experience ($1Billion+ AUM) and leverage in the marketplace. 

Mathematically speaking all of the limited partner's outside basis (80% interest) would have to be multiplied by .63 to compress to 50%.

The strong demand combined with very low interest rates have allowed sellers to compress cap rates greatly over the last few years. 

$150 a month would compress margins and make for a significantly less attractive property.

As cap rates continue to compress across commercial real estate sectors and as a residential lending environment become slightly more challenging, institutional investors have capitalized on an opportunity to acquire large portfolios of single-family home rentals in recent years.

I've had success with cashflow rentals aroundSeattle by getting off the beaten path- there are established investors bidding up the price (and therefore compressing the cap rate) on many small multi-families, but those same investors are not going after large 6-9 bedrooms SFHs that you can rent by the room to young professionals and college students.

This space will feel very compressed. 

Cap rates there, if you look hard,are still somewhat reasonable but are getting compressed as well.  

If you wouldn’t mind sharing some more information maybe we could help answer the question.The multifamily market is very compressed and competitive right now, if you can get 20 coc and a good irr, you are doing pretty good!

Second, Cap rates get a lot of attention on here BP with the common refrain being something like "OMG look at cap rate compression!