This will put upward pressure on prices, and yields will compress further.

This is so that as ring compresses and is pushed outward it slides into soft wax.10.

Yes I can tell you the 50% rule rarely happens with properties.There are many,many buyers who do underestimate repairs and as long as they are solvent and look good banks will loan to them based on a high sales price.I would consider going higher than the 50% if the property had been recently renovated inside and out in a decent area and my hold time was only for a few years.The quads I bought at the height of the market went for 400,000 a piece back in 2008,2009.I didn't pay anywhere close to that but as the market comes back competition and CAP rate compression will hit driving sales prices up,up,up.Seasoned investors might not buy at those prices but plenty of other buyers will.I see people with 401k's retiring with 250,000.They plow it into buying a restaurant that when they work it full time might make the 40k a year.Little do they know how hard they will have to work and how small the returns will be.There is no way to hit the numbers you are hitting in the areas I would buy in.I have other exit strategies besides a long term hold and purely cash flow so motivation is different.

On top of severely compressed Caps (5%ish), you're lucky to hit leveraged cash on cash returns in the upper single digits.  

When rates do rise, if they aren't prepaying, and it comes time to refinance, the values of these properties will have declined as the now artificially compressed CAP rates begin to expand, causing investors to need more equity to finance the properties.

The compression of cap rates will have to stop as capital deploys and flows to easier returns.  

Now with cap rate compression, it is difficult to find a promising deal in which to place the proceeds.

Doesn't matter if it's residential, multifamily, land development, office, retail, self storage, etc. you can lose your shirt if you buy wrong going in.Now some people less experienced can buy at the bottom of a cycle knowing very little and let timing and cap compression bail them out.

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. 

cap rates compressed and it's hot everywhere.