This is the tightest compression cycle we've seen in the real estate biz EVER. 

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

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

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.

I've had success with cashflow rentals in 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 6-9 bedrooms SFHs that you can rent by the room to young professionals and college students.

As the cost of capital continues to compress with 10-year fixed rate debt at historic lows of approximately 2.50% and a 10-year US Treasury yield hovering around 0.676%, it is making a lot of math work for lower cap rate opportunities and owners looking to refinance and hold.

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

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%.  

In those cases the cycle compression created the wealth not the money coming in from the job to invest that is over what they spend monthly as excess cash to invest.You are 17 years old.

Once you bring a property manager into the mix, that premium compresses or simply disappears.