Cash flow has been compressed for ALL asset types by the increase in interest rates, and there is also increased competition for STRs. 

Another thing to consider is the compression that is coming into the area.

Provides solid returns for investors in an uncertain and compressed residential real estate market.- Educate veterans about all the tech and operations jobs the industry has to offer. 

BUT, RE cap rates are remain compressed despite being in arguably a major recession, I worry about their sustainability long term especially when the interest rate environment changes. 

Interest rates have been crushing, or at least compressing deals for them just like interest rates have been causing trouble for small investors like you and me.

These cap rate compression could happen because interest rate was low enough for almost 13 years.

Cap Rate Compression: In appreciating markets, cap rates tend to compress over time, signaling strong property value increases.

If there's fewer transactions, there's less opportunity for wholesalers to skim off the top.Also, wholesalers typically work with investors and with rates higher, investors have less room to pay for wholesaler fees when their net yields are already significantly compressed due to having to pay more for debt.

From a buyer's perspective if they are willing to sell based on the current compressed NOI and incomes then you are likely getting a decent deal once stabilized. 

Rates are being compressed and have been for some time, we see a lot of clients going airbnb to long term furnished/unfurnished.