For a very insightful overview of what the market is doing and why cap rates are compressing even when interest rates are going up, I would listen to @Gino Barbaro podcast "wheelbarrow profits" with Neil Bawa.

So if you think the value of the property is $1.4m, you are correct, the cap rate would be 4.52%Because of high property valuations and a generally hot market, properties in the Boston area have what we call "compressed cap rates" -- meaning the cape rates are relatively low.The next thing you need to think about is financing payments.

Everyone knows cap rates have compressed in recent years, are they somehow immune to market forces that would push them back up?

The compression of inventory over the last 10 years has gradually restricted the discounts on the buying side.

There's a lot of investor money pouring into Phoenix, which drives up purchase prices and compresses cap rates. 

It all takes a lot of time and effort, but I would argue that once you have the system in place, you've compressed time-frames and will see the results that YOU actually want quicker and more abundantly

Be careful of multifamily properties on your first deal - CAP rates for multi's are severely compressed around here right now, and it will be very hard to find good cash-flow.

Margins are compressed based on current home values since it is a more mature STR market.

Hi David,Austin is very compressed right now.

NNN and MF have had crazy Cap Rate compression.