I'm seeing more compressed cap rates for value adds than stabilized properties.

Boy if this projected return IS inclusive of the gains upon sale (and I did ask the sponsor that question promptly by email), then we are talking about some very notable and disappointing cap rate compression, huh?!

I'm ok with this as long as I'm buying below market value in a compressing cap rate environment, I am self-managing effectively and I have enough reserves to cover any cap ex AND a margin call. 

As I get later in a market and cap rates (and as a consequence ROI) gets compressed I start to temper my expectations. 

If you have intention of using your IRA or IRA/LLC for multiple investments throughout the year, or any concern that a "deal" may need to be funded in a "compressed time frame" this is one of the best structures from both an efficiency as well as a cost perspective in my opinion.  

We are in compressed cap rates in the current market, so 1% rule is harder to come by esp in the a/b class markets that tend to have higher appreciation potential.The city likely has higher cash flow, but investing there is not for everyone. 

My basis for this is cheap money, overly compressed cap rates, ending or moratoriums, supply & logistics issues, etc.

Cap rates continue to compress nationwide in almost every market.

In FL cap rates are more compressed due to no income tax state just like Texas.

We are in an environment of unprecedented cap rate compression and record low interest rates which is only headed in one direction after this is all over.Yes, make no mistake, the music will soon stop.That has very little to do with an upcoming election and is regardless of who wins the White House or who controls congress after November.If you've listened to Kevin Bupp and Rod Khleif, you know what happened to their portfolios in 2008.These were no amateurs, as a matter of fact, they had many years of investment experience when the music stopped.They both weathered the storm and came back stronger and that is why I remain a shameless fan of both men till today.Several others were not that lucky, and you will never hear their names.In this space today, there are investors and there are educators.The educators have taken over the habitat.That is why there are now more podcasts on real estate than I can get through in a working week.Real Estate education is so very lucrative now that it is possible to make way more money from podcasts and books than in actual real estate investment for some gifted marketers with smooth tongues and gifted content creators.more....To read full article,click link below:https://www.biggerpockets.com/...