There is a lot of cap rate compression in our market and it can be difficult to find a property that cash flows unless you are putting down a larger down payment.

Air compresses and causes pressure fluctuations. 

A lot of compression occurred through bunching up and room mate situations.

So, in my area cap rates are pretty compressed anywhere from 3.5% to 6.5% for less desirable properties. 

The simple fact is the yields/returns that could be achieved with relative ease 2-3 years ago have compressed 100-200 bps.

@Jamie Turbyne, what we saw during the last recession was that prices compressed, rather than dropped uniformly.

Sometimes they weren't cleaned and filled with sand which eventually compresses together and can seap out.In short, there are a number of ways this can go wrong.

Not only will finding a buyer be easier in a high demand market but your chances of appreciation are greater especially if you can get into a market that has strong economic indicators where cap rate are compressing or trending down.

I saw a home last month where the termites ate a wood truss so bad, the weight of the home compressed that 2x8 truss to a 2x6. 2 inches of movement is a lot.

I recently built a 4,400 sq ft shop on my property where I did the GC and paid framers, roofers, plumbers and electricians then I did the rest with cabinets, flooring, painting, compressed air system, air exchanger, trim, doors, baseboard, etc.