Trying to make sense of multifamily (acquisitions) right now
For those working in the multi space, are you worried about the declining profitability of the asset class given how competitive deals are and where cap rates continue to go? I just looked at a deal in an "ok" part of the Tampa MSA and the thing got 40+ offers with best and final pricing at a 3.3% tax adjusted cap rate.
Am I missing something? I believe the fundamentals are strong for multi demand, so much so that the asset class could be considered much lower risk relative to others, but I worry this asset will turn into what NNN Arby's are, essentially a low risk bond with extremely limited profitability.