If the US proves out to be the safest investment haven globally and sees continued capital inflows, Treasuries will likely compress / fall and investors will turn to real estate to continue to diversify.  

The industry is mature and margins have properly compressed.

This poses the opportunity to acquire a distressed property today, spend the next 3 years to fully stabilize the property, capitalizing on the coming spike in rent growth, falling vacancy, falling interest rates, and compressing cap rates for multifamily real estate in the D.C. metro, as well as the option to hold the property as a safe and lucrative long term investment given the macro factors coming to Washington D.C. and the fundamentals of the multifamily sector.Cap Rates, Interest Rates, and the Best Sellers to Target to Get Deals DoneMarket Cap Rate, DC Metro, (1/7/2025) Period Market Cap Rate 2030 5.1% 2029 5.1% 2028 5.2% 2027 5.3% 2026 5.4% 2025 EST 5.6% 2025 YTD 5.7% 2024 5.7% 2023 5.6% 2022 4.9% 2021 4.4% 2020 4.8% 2019 5.0% 2018 5.1% 2017 5.1% 2016 5.1% 2015 5.0% 2014 5.1% 2013 5.3% 2012 5.3% 2011 5.3% 2010 5.5% 2009 6.2% 2008 6.2% 2007 5.5% 2006 5.4% 2005 5.6% 2004 6.1% 2003 6.7% 2002 7.3% 2001 7.9% 2000 8.4% Cap RatesIn the next few months, cap rates on the right deals should be rising, making it an opportune time to buy.

Congratulationswhat you’ve found that both the INVESTMENT side of real estate, and theBUSINESS side are very competitive; therefore profit margins are compressed, so those “home runs” people like to bragg about are actually quite rare.  

R19 being 5.5" won't fill the cavity, and the 9.25-10" that R30 comes in would mean that it would have to be compressed a bit.

Here's a breakdown of both the risks and opportunities:Risks to ConsiderHigher Interest Rates: Financing is more expensive now, which can compress cash flow and make some deals less appealing on paper.

All major flippers in town have heavily compressed ARV to accommodate for the potential of the downward slide to continue.

If it compresses the learning curve by six months or a year, time is money. 

Boston from what I've heard is very tough with compressed cap rates.

Don't use some compressed 5% cap rat, you'll lose money if you do.