In addition, the interest rates are relatively low right now so cap rates will most likely stay compressed over the nearest future. 

However, if you were to outsource it to PM Company, then that could compress your monthly cash flow figures. 

The market is frothy and cap rates have compressed.

Asset prices have run up significantly in the last few years (cap rates have compressed) and I do think that those who are looking at doing shorter term holds (shorter loans) are at a much greater risk when cap rates expand. 

If the prices of commercial property goes up, Cap rates are forced to compress.

I can literally walk around the edges of my cover & it never compresses so whatever they use is impressive. 

Thus, creating a surge of demand, and resulting in CAP compression. 

My understanding: Expanding the cap rate by 20 basis points (1/5th of one percent) per year as an assumption about the state of the market upon disposing of the apartment building in question is the syndicator basically saying: "We are not only not modeling in cap rate compression (which would make the property more valuable), we’re modeling in cap rate expansion, which means we’re assuming the market will decline during our hold.

When you increase the compression ratio, you need to increase the octane to prevent predetonation. 

Considering multi family is a great idea but cap rates are so compressed and competition is fierce might be hard.. something a lot of people are considering aside from these bidding wars are development.