(10k/100k = 10%)If you sold at 200k, and your NOI is still 10k, your cap has compressed to 5%

Or maybe cheap market areas have a more compressed price range than I would have thought.

Even multi families have super compressed cap rates which while is still a good defensive strategy, really leaves you with minimal margins (I gave up on commercials already since we’re seeing 5-5.5% which is ridiculous). 

Fortunately, we bought it at a really good price and enjoyed a nice tail wind from cap rate compression, so it was like a bad marriage with a happy ending.

(BTW, doing the same for MFH cap rates over a 5 year period shows about 15bps/year compression, so I use the reverse when underwriting for disposition cap rate).Hope that helps!

Life changes, as well as your needs - you have a child or another child, someone gets sick, markets compress, etc. 

On a side note, the market is so compressed here that finding a 1% property is very difficult because housing supply is very low in the area.

Not much delta between compressed CAP rates that we are seeing on turn key properties these days and the interest rates on the loans many folks use to buy them. 

I honestly think this spring market and summer market are going to be compressed and create a lot of good opportunities for sellers still.

We've been talking about an impending recession coming for quite some time, markets have been toppy, cap rates compressed, GDP struggling...