There is compression in cap rates and multi-family rents are softening in many major metros."

This especially holds true in markets that have wild swings in cap rate compression and have gone down which has increased selling prices and equity greatly.

While multifamily cap rates are compressed compared to the cyclical average, they are still high in Indiana relative to other markets.

We are seeing compressed cap rates for 3/4 plex right now.  

For example, you've already analyzed the cap rate difference from $320,000 to $420,000 because of the capital items you have to spend money on... this has compressed your cap rate from 15% to 9%.  

I have watched the exodus of capital from the bond market move into real estate given the historically low yields and drive the cap rate compression that we are seeing (not the only reason).  

I've had success with cashflow rentals around Seattle 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 5-9 bedrooms SFHs that you can househack by the room or split up with an ADU / MIL.

I’ve personally been impressed by the city’s newest compressive development plan: https://www.ci.taylor.tx.us/DocumentCenter/View/13206/Envisi...

However, the one thing I did notice is the cap rate. 5.15% to me is compressed.

@william swigart I design my deals to account for current and future economics, interest rate risk, cap rate compression/expansion, market fundamentals, etc.When compensating my investors I strive to make the opportunity a win-win for all parties involved.