Prices have been driven up by the large funds and cash on cash returns are highly compressed especially in the last year or so.

Some clients are buying long term for 10 or 15 years and others are looking at a 3 to 5 year shot where they get at a 9.5 or 10 cap and then sell for a 7.5 with cap rate compression and rent bumps annually.

Essentially, what you're doing is compressing your purchases into the immediate future rather than spreading them out over years.

I am fortunate enough to earn a very good living that allows for 3-4 days off per week due to a compressed work week.

Some people using this strategy might be ok with lesser returns because: 1) they cant come up with the cash and need the debt 2) they are considering after tax results 3) market (non forced) appreciation if factored into their analysis by way of ever increasing rents or cap rate compression on sale 4) they just need a place to park their capital for the time being and real estate is a safe bet.  

Hello BP community of multifamily investors, owners, operators, syndicators and managers. I'm curious to see what everyone is seeing and your thoughts on where preferred returns offered to limited partners are headed ...

Ensure that you can still service debt and carry yourself even if things compress. 

Is the the cap rate that was originally used to buy the property how the appraiser will value the property after it has been renovated and stabilized with higher rents, or will the cap rate compress with a renovation and a higher noi?

Dude, don't mention Ve****ty Ba**ing.On the original topic, Abraham Lincoln has a quote that is topical: “He can compress the most words into the smallest ideas better than any man I ever met.”

Of course within any investment thesis there must be many 'assumptions' made about future values, economics, etc.If someone has a successful track record before 2019, but has not bought in this new low interest, hyper Cap rate compression market...is it fair to rely on their past track record to justify future success?