With possibly hyper inflation looming single family and multi family have more chance for rent growth in the short to medium term but that is ACTIVE yield you work for versus passive NNN STNL.6.5 cap rate is high as most medical in stronger areas is 5 caps or so.There are also vacant STNL where you invest with a sponsor for turn around properties.

Currently with inflation, yes cap rates are a bit compressed, but there are good deals getting passed by not looking at the full picture, and overall return.

Liz,  Inflation is nearly twice that of long term interest rates. 

Yardi as well.That said, large markets are experiencing price inflation, so looking at data that's 3 months old is not useful, and even predicting future rents upon current surveys can be challenging.

With inflation that we are seeing now, and especially in the future, it is definitely a great idea to put your capital to work earning income vs inflation chipping away at you in the bank! 

With the current inflation, we are expecting rent prices to continue increasing, and do not want to cap our potential. 2.

Inflate your numbers when you analyze a deal.

You need appreciation to get past collecting low rents and to beat inflation.

That is one risk to take into account, on the the other hand if inflation causes interest rates to rise, it is likely that rents will rise as well and offset some of that risk. 

As inflation remains at a high level the FED might be forced to act sooner than a lot of people think and you would kick yourself if you didn't take advantage of the current low-interest environment.