I'll also have to guess the previous leak 'repair' was also to the drain or trap vs the compression line.  

On the commercial side, it's a similar story in terms of cap rates (they are fairly compressed, but like any general rule, not the only basis on which to evaluate a property) however this is offset by having NNN leases so increased gen-op costs are shifted to the tenants, and value-add opportunities as a way to "force" appreciation as well as generate additional income.  

Do they think cap rates are going to continue to compress forever?

Time compression!

Hey James, we are expecting further cap rate compression.

When they do this rate hike in March you will see the delta between the 2 and 10 compress very quickly. 

With cap rates compressing I feel like I have to come off my standard 10-12%.

The top cord is under compression and the bottom cord is under tension.

We executed our value-add plan over two years (including installing new homes, raising occupancy, removing problem tenants), but most of the appreciation here was due to cap rate compression, not NOI growth.

So that fizzles down the cash-on-cash return quick.If you're looking to get into multifamily, expect extremely compressed cap rates on turnkey properties right now.