Resources for Real Estate Investors

Real estate investors who locked in properties during the early years of the pandemic were rewarded with strong appreciation and, in many cases, growing rental income. But they weren’t immune to rising fixed costs—especially property taxes. Rapid home price growth during the Pandemic Housing Boom pushed up assessed values in many markets. Depending on location, those tax hikes may now be eating into operating margins and cash flow. To understand where investors are most impacted by property taxes—and where they can find the lowest rates—LendingOne analyzed the latest U.S. Census Bureau data to calculate the effective property tax rate, defined as median property taxes paid as a percentage of median home value, across hundreds of metros. Key Findings Rochester, NY has the highest effective property tax rate in the country at 2.45%, with other high-tax metros including Buffalo, Chicago, and Albany following, each with effective rates above 1.75%. Midwestern and Northeastern metros dominate the top of the list, where lower home values meet higher local tax rates. Florida metros have seen sharp increases in total tax bills, but their effective rates remain lower compared to older high-tax regions. Effective Property Tax Rate Among the largest 100 metros by occupied housing units, these ten had the highest effective property tax rates in 2023: Rochester, NY: 2.45% Chicago-Naperville-Elgin, IL-IN: 1.93% Buffalo-Cheektowaga, NY: 1.91% Albany-Schenectady-Troy, NY: 1.79% Laredo, TX: 1.64% Cleveland-Elyria, OH: 1.62% Syracuse, NY: 1.56% Scranton–Wilkes-Barre, PA: 1.55% Toledo, OH: 1.52% Milwaukee-Waukesha, WI: 1.50% In markets like Rochester and Buffalo, relatively affordable home prices can be appealing to investors—but high effective tax rates mean property taxes take a disproportionately large bite out of net operating income. Effective tax rate vs. tax bill growth: What matters for investors It’s important to distinguish between high effective tax rates and high (or fast-rising) tax bills. Several metros saw their effective property tax rates fall from 2019 to 2023 as home values rose faster than taxes paid. But the actual dollar outlay remains high. Atlantic City, NJ: down from 2.87% to 1.70% East Stroudsburg, PA: down from 2.36% to 1.44% Keene, NH: down from 2.63% to 1.84% Laredo, TX: down from 2.26% to 1.64% Lebanon-Claremont, NH-VT: down from 2.16% to 1.61% Despite the percentage drop, investors in these areas may still be paying more in absolute dollars—especially if they acquired property during the boom years. That’s because the effective tax rate is a ratio of taxes paid to property value—so if home prices surge but tax bills don’t rise at the same pace, the rate can decline while the actual amount owed increases.  For example, an investor who purchased a $250,000 home in 2020 that’s now assessed at $350,000 may face a larger tax bill, even if the effective rate has dropped from 2.2% to 1.8%. In other words, a falling effective tax rate doesn’t always translate to real savings—it can simply reflect rising home values outpacing reassessments. A high effective tax rate means a larger share of a property’s value is lost to taxes each year—an important metric for investors focused on cash flow yield, especially in lower-priced markets. A high or fast-growing tax bill can put pressure on out-of-pocket operating costs, even if the rate isn’t especially high. This is more common in fast-growing Sunbelt metros, where appreciation outpaced reassessments early in the pandemic. For investors, both can impact returns—but effective tax rate is the more stable, structural indicator of how burdensome local taxes really are. Effective tax rates in the largest 50 U.S. metros Florida metros are seeing rising tax burdens—but still lower rates Florida metros like Lakeland, Tampa, and Palm Bay have posted some of the biggest five-year increases in property tax bills, reflecting sharp home price growth and new assessments. But their effective rates remain modest relative to legacy metros. This nuance matters for investors. A market like Tampa may look affordable from a tax rate perspective, but investors entering at today’s prices should still factor in elevated tax bills as part of their underwriting. Median annual property taxes for the largest 40 U.S. metros The highest tax bills remain concentrated in expensive markets While effective tax rates highlight structural tax burdens, the biggest absolute tax bills are still found in high-priced coastal metros. New York-Newark-Jersey City, NY-NJ-PA: $9,615 San Jose-Sunnyvale-Santa Clara, CA: $9,553 Bridgeport-Stamford-Norwalk, CT: $8,840 San Francisco-Oakland-Berkeley, CA: $8,380 Austin-Round Rock-Georgetown, TX: $7,066 These metros aren’t necessarily effective tax rate outliers—but high assessed values push annual property tax payments well above the national average. Big Picture For real estate investors, property taxes are one of the largest recurring expenses—and a key driver of deal-level cash flow. Markets like Rochester, Chicago, and Buffalo have structurally high tax burdens relative to property value, making them especially important to underwrite carefully. Meanwhile, rising assessed values in markets like Florida are pushing up tax bills, even if the rate appears modest. The most successful investors in today’s market are those who go beyond surface-level affordability and dig into the real, local cost of ownership—and that means paying close attention to property taxes.

The last few years have brought sharp shifts in the rental market, with multifamily rents cooling in high-growth metros like Austin, Denver, and Phoenix.  However, in many of these same markets, single-family rents have held up better than their multifamily counterparts, creating a steady performance gap between the two sectors. National single-family rents rose +3.8% between May 2024 and May 2025, while multifamily rents rose +2.6%, according to LendingOne’s analysis of Zillow rental data. It’s a trend LendingOne continues to track closely, helping investors navigate where resilience—and opportunity—still exist. To see which markets are seeing single-family rental growth outpace multifamily rental growth the most in 2025, LendingOne analyzed year-over-year rental growth data from the Zillow Observed Rent Index (ZORI)* for the largest 100 U.S. metros. Single Family vs Multifamily Year-Over-Year Rental Growth Topline Findings Among the 100 largest markets, year-over-year single-family rental growth is outpacing multifamily rental growth in 75 markets.  In Sunbelt markets like Phoenix, Austin, and Denver, multifamily rents are falling, while single-family rents are holding up better—despite high overall supply. The strongest rental markets overall remain in the Northeast and Midwest, where both single-family and multifamily supply remains constrained and demand continues to be strong. Why is there Rental Growth Divergence? While national rents are still rising, growth has decelerated significantly since the peak of the Pandemic Housing Boom, when year-over-year single-family rent growth topped +13.4% in March 2022 and year-over-year multifamily rent growth peaked at +16.3% in February 2022. In the past year, markets like Denver, Charlotte, and Colorado Springs have seen single-family rents hold firm—or even accelerate—while multifamily rents have flattened or declined. So why is the multifamily market now seeing more softness than the single-family rental market? As of July 2025, the multifamily market is still absorbing a massive wave of new supply. According to RealPage, over 439,000 units were completed in 2023, followed by a record 671,953 units in 2024—the highest annual total since 1974. While construction is slowing—RealPage projects about 431,000 completions in 2025—many of those units are still coming online. Therefore, the divergence in single-family rental and multifamily rental growth is particularly pronounced across the Sunbelt, where multifamily developers have added supply at a rapid pace—but single-family rental demand remains steady. Difference in year-over-year single-family and multifamily rental growth Year-Over-Year Multifamily Rental Growth The softness in multifamily isn’t universal. Some markets with limited new construction and tighter housing stock are still seeing strong multifamily rent growth. In these metros, both single-family and multifamily rents are rising briskly, suggesting localized supply constraints and resilient demand across the board. Many of these strong rental markets are concentrated in the Northeast. Among the largest 100 metros, these are the top 5 with the biggest year-over-year multifamily rental gains: Augusta, GA: +7.2% Syracuse, NY: +7.2% Worcester, MA: +6.6% Bridgeport, CT: +6.4% Providence, RI: +6.1% Year-Over-Year Single Family Rental Growth The single-family rental market is not experiencing the same flood of supply as the multifamily market has. As a result, single-family rentals are benefiting from more limited inventory, especially in suburban and secondary markets where renters are prioritizing space, privacy, and flexibility. Among the largest 100 metros, these are the top 5 with the biggest year-over-year single-family rental gains: : Augusta, GA: +6.7% Indianapolis, IN: +6.5% Cleveland, OH: +6.5% Providence, RI: +6.5% Columbia, SC: +6.3% Big picture:  Overall, while multifamily markets are digesting a record wave of new units, the single-family sector hasn’t seen the same inventory growth. That’s helped keep single-family rents more stable in many metros. In places like Denver, Phoenix, and Austin, multifamily rents are flat or falling, while single-family rents remain positive. Still, in supply-constrained markets—especially across the Northeast—both rents across the board are growing, supported by tight inventory and steady demand.  For real estate investors, this trend highlights the relative strength of single-family rentals in oversupplied markets—and the importance of tracking local supply conditions.

How SFR Investors Can Win in Today’s Market The housing market isn’t what it was three or four years ago—and it’s not going back anytime soon. For single-family investors, this means adapting to a “new normal” where higher mortgage rates, increased carrying costs, and a rise in resale inventory are reshaping the investment landscape. Well gone are the days of buyers lined up around the block and bidding wars on every listing. But that doesn’t mean opportunity has vanished—it just looks different now. Many of the conditions that are causing hesitation in the broader market may work in favor of investors who approach this cycle with discipline, creativity, and a long-term mindset.  From financing strategies to market-specific deal flow as listings sit longer, to improved pricing power on insurance for larger portfolios—today’s environment rewards those who are prepared to pivot. The good news? With the right approach, investors can still uncover solid opportunities to build wealth, grow cash flow, and position themselves ahead of the next upcycle. Here are five things investors can do to win in today’s housing market. Buy the Deal, Not the Fed Waiting on the Fed to cut rates is not an investment strategy—it’s a gamble.  While many would-be investors sit on the sidelines, hoping for a pivot that may come too late or too slowly, experienced investors are staying active and searching for deals that pencil out. They’re underwriting conservatively, negotiating more aggressively, and prioritizing deals that make sense in today’s market—based on current rates, rents, and risks. Rather than chasing hypothetical upside tied to future monetary policy, they’re baking in downside protection on the front end. It’s not about timing the Fed. It’s about structuring the deal so that it works with the hand you’re dealt today. More Inventory Is An Opportunity for Value Buyers  After a long stretch of near-record-low active inventory, single-family investors are finally seeing more resale homes come to market. For some, that might sound like bad news—more competition, less pricing power. However, the reality is that this normalization creates opportunities, particularly for disciplined buyers who focus on value. In some markets, specific properties are now remaining on the market for extended periods. Sellers growing fatigued by slow sales may be more willing to negotiate, opening doors for buyers to purchase homes below their previous peak prices. Especially in Q3 and Q4, expect pockets of deals that require some repairs or capital expenditures—classic value-add plays where investors can boost rents and equity over time. Investor Sentiment: More Bullish Despite the Headwinds Interestingly, when we fielded the LendingOne–ResiClub SFR Investor Survey this quarter, we found that investors are becoming more confident about buying—even as they acknowledge that the market feels slower and mortgage rates are higher than previously expected. In fact, in Q2 2025, 79% of single-family investors said they’re likely to purchase at least one more property in the next 12 months. That’s up from 61% in Q2 2024 and 77% in Q4 2024. This shift signals that many are embracing the new normal rather than waiting for old conditions to return. They recognize that market dynamics have changed permanently and are adjusting acquisition criteria accordingly, or they may be attracted by rising inventory and some markets turning into buyers’ markets. This pragmatic mindset bodes well for the single-family investment space. Rather than being paralyzed by uncertainty, investors who stay disciplined, focus on fundamentals, and pursue value will be best positioned to succeed. Insurance Stability Emerging After the Storm—Don’t Be Afraid to Policy Shop The last few years have seen a surge in property insurance costs, fueled by rising replacement values. However, according to our intel, this lagged inflationary spike is beginning to level off. This provides investors with better clarity for cash flow projections and long-term planning. And if you’re savvy, you’ll even be able to get it lowered a little. For those with multiple properties, now is an ideal time to explore portfolio-level insurance, which spreads risk across your holdings and can unlock significant discounts.  Even for smaller landlords, policy shopping—getting fresh quotes, reassessing coverage levels, and comparing carriers—can yield real savings in a market that’s no longer spiking month after month. It’s Time To Be Strategic!  Yes, the housing market today looks very different from the frantic boom of the pandemic years. But for single-family investors willing to think strategically and embrace change, it remains fertile ground for growth. Whether it’s taking advantage of ARMs, leveraging portfolio-level insurance savings, or hunting down value deals in rising inventory. The market’s “new normal”—and no one truly knows how long it’ll last—might require a little more patience and flexibility, but it also offers a real opportunity for those ready to adapt and invest with their eyes wide open.

The single-family build-to-rent (BTR) category isn’t niche anymore—it’s mainstream. Annual BTR deliveries hit 39,000 homes in 2024, a 455% jump from pre-pandemic 2019 levels. As of April 2025, there are another 90,000 purpose-built single-family rental units in active development across the country’s 100 largest metros. There’s a good reason why build-to-rent supply is up: renter preferences are shifting. According to a 2024 survey by John Burns Research and Consulting (JBREC), 36% of BTR residents now say they prefer renting over owning, up from 27% in 2023. That jump signals that more of today’s BTR renters aren’t just settling for rentals because they’re priced out—they’re actively choosing the lifestyle, flexibility, and convenience that BTR communities offer. But who exactly are the folks choosing to live in build-to-rent communities? What motivates them to rent rather than buy—and what keeps them there? To answer these questions, LendingOne analyzed the latest data. Here are 3 things to know about BTR renters in 2025. 1. Renters Want More Space That shift is clear: BTR homes increasingly cater to families who need extra space for kids, work-from-home setups, or multigenerational living. It’s part of what makes BTR communities fundamentally different from traditional apartment offerings, and a reason renters who would have once transitioned to homeownership are staying put. More Spacious Single-Family Rentals Are the New Normal 2. Preference for Renting is Ticking Up Across All Life Stages In 2024, renters at all life stages reported a stronger preference for renting than they did just a year earlier. BTR is a particularly attractive option for millennials who are reaching the prime age for major life milestones like child-rearing. Young singles/couples who rent in BTR communities, in particular, saw a 12-point jump in their preference for renting (from 23% in 2023 to 35% in 2024). Young families also experienced a 12-point increase (from 17% to 29%). It’s also an appealing option for empty nesters who want the financial flexibility and lifestyle ease of renting versus owning. Mature families and older adults—once assumed to be natural buyers—are also embracing rental life. In 2024, nearly half (46%) of mature singles and couples living in BTR communities say they are there by preference, up from 42% the year before. While the extra space is a bonus for the older crowd, they are also drawn to the amenities that tend to come along with BTR communities, including swimming pools, fitness centers, tennis courts, and clubhouses. This preference shift reflects a broader cultural change: renting, especially in high-quality, well-managed BTR communities, is now seen as a lifestyle choice, not a compromise. Share of Build-to-Rent Residents that Prefer to Rent 3. Affordability Math has Some Americans Renting Longer While preferences are shifting, strained home affordability remains a primary driver of build-to-rent’s growing popularity. In nearly every major metro, the monthly mortgage payment for a median-priced single-family home significantly exceeds the average monthly rent for a comparable BTR home. In San Francisco, the gap is over $4,000. In San Diego and Seattle, it’s more than $2,900. Even in fast-growing Sunbelt markets like Austin, Raleigh, and Phoenix, a mortgage payment for a single-family home costs about $1,100 more per month than renting one. That gap explains why many would-be buyers are choosing to stay in rental homes longer. The math just doesn’t make sense for many households—especially younger families who may not have the savings or income stability needed to qualify for today’s higher mortgage rates. Strained affordability blocks some renters from homeownership Big Picture For some Americans, build-to-rent homes are no longer a stepping stone—they’re a destination. With demand driven by young families, working professionals, and downsizing retirees, BTR communities offer the space, flexibility, and lifestyle that today’s renters increasingly seek.  That appeal is reflected in the scale of the U.S. build-to-rent pipeline, which now exceeds 90,000 units across the 100 largest metros. Even in BTR-saturated markets like Phoenix, Dallas, and Atlanta, development remains active. For real estate investors, that persistence signals confidence in the category’s long-term staying power.

Build-to-Rent (BTR) is becoming one of the most dynamic and rapidly growing segments of the U.S. housing market. With multifamily investors seeking new avenues for growth, BTR presents a compelling investment case due to favorable demographics, lifestyle trends, and a pressing national housing shortage. This whitepaper examines the primary drivers fueling the growth of the BTR market in the U.S., the movement of multifamily investors into this niche, what attracts investors to BTR, the challenges the asset class faces, and why LendingOne is a preferred lending partner for owners and operators in this space. Key Insights from this Whitepaper Why Build-to-Rent (BTR) properties often generate stronger rent performance and lower turnover than traditional multifamily How major players like Greystar and MAA are expanding their footprint in the BTR sector Key trends in institutional investment—and what they reveal about long-term confidence in BTR Ways LendingOne is supporting developers in funding and growing scalable BTR communities Case studies highlighting how leading operators are shaping the future of suburban rental housing Download the Whitepaper

The 2025 real estate investing environment is one of cautious optimism, with a desire to still expand their portfolio. A belief for higher-for-longer interest rates, uncertainty related to tariffs, and cost increases that are reshaping portfolio decisions across the U.S. In this article, you’ll see the full results of our LendingOne-ResiClub SFR Investor Survey–Q2 2025. Investors who own at least one single-family investment property were eligible to respond to our survey, which was fielded between May 29 and June 13. In total, 222 single-family landlords completed the survey. ResiClub, our partner for the survey, is a news and research outlet dedicated to covering the U.S. housing market. LendingOne’s findings point to investors seeking selective growth. Most respondents across all regions say they still plan to acquire new properties in the 12 months ahead, and investors are not pricing in a drop in renter activity—at least not in their local markets. Even in markets like the Southeast and Southwest, where investors say the market is weaker, they also respond that they are trying to purchase more.  At the same time, rising insurance premiums, property taxes, and higher-for-longer interest rates are forcing investors to reassess margins, stress test cash flow, and stay disciplined on acquisitions. “In 2025, real estate investing is about finding opportunity in a changing market,” says LendingOne CEO Matthew Neisser. “Our survey highlights that investors are not backing down despite the ‘higher-for-longer’ interest rate environment and rising costs. Instead, they see the initial signs of buying opportunities as inventory levels increase. There will be more opportunities in Q3/Q4 for unsold properties that have been on the market longer than normal compared to the prior few years.” Topline Findings 1. Most investors plan to buy—despite headwinds 80% of single-family landlords say they’re likely to buy at least one property in the next 12 months. 32% of single-family landlords say they’re likely to sell at least one property in the next 12 months. 57% of investors believe mortgage rates will remain above 6.5% over the next 12 months—up sharply from 29% in Q4 2024. 2. Operating costs are rising—especially insurance 59% of landlords say higher insurance premiums have moderately (42%) or significantly (17%) reduced their cash flow over the past year. 30% of investors said property taxes were their largest expense increase last year, followed closely by 29% who cited home insurance. In the West, 19% of landlords report insurance premiums have risen more than 50% over the past five years. 3. Rent growth is still on the table 83% of landlords plan to raise rents in the next 12 months—but only 10% of landlords expect rent hikes of more than 7%. Only about 12% of respondents expect rental demand to weaken over the next year, while 89% expect it to remain steady or improve.  Big picture: The results of the LendingOne–ResiClub SFR Investor Survey (Q2 2025) point to a market where most single-family rental investors remain in cautious acquisition mode. With borrowing costs still elevated and operating expenses rising, investors are adjusting their strategies and attempting to modestly raise rents to offset pressure on cash flow. In today’s environment, successful investing requires discipline—and those best positioned are focused on long-term fundamentals. Likelihood of Buying in the Next 12 Months Likelihood of Buying in the Next 12 Months (Q2 of 2024 to Today) Likelihood of Selling in the Next 12 Months Impact of Rising Insurance on SFR Investor Cash Flow 5-Year Insurance Cost Changes How SFR Investors View Home Price Momentum (12 Months) How SFR Investors View Rental Demand Over the Past 12 Months How SFR Investors Expect Rental Demand to Be In the Next 12 Months How Much SFR Investors Plan to Raise Rents in the Next 12 Months Expected Home Price Changes Nationally Over the Next 12 Months Expected Home Price Changes Locally Over the Next 12 Months Expected 30-Year Fixed Mortgage Rates Next 12 Months

Once a niche strategy, build‑to‑rent (BTR) is now a part of the mainstream.  Annual U.S. build-to-rent (BTR) deliveries soared to 39,000 single-family homes in 2024, a 455% increase from the pre-pandemic 2019 BTR delivery count. Moreover, according to LendingOne’s analysis, the runway is long: the nation’s 100 largest metros still have over 90,000 units in the active BTR pipeline. And while development is still heavily concentrated in the Sunbelt, purpose-built single-family rental communities are now cropping up in smaller Southeastern, Midwestern, and Mountain West metros, warranting real estate investors’ attention. Annual U.S. Build-to-Rent Deliveries Hit Another All-Time High To see where the build-to-rent has made the biggest footprint—and where BTR is continuing to expand—LendingOne examined Point2Homes/Yardi’s metro-level database of completed single-family build-to-rent deliveries from 2020 to 2024 and active pipeline counts as of April 2025, across the 100 largest U.S. metros. These were our top-line findings: BTR deliveries that were seeded during the Pandemic Housing Boom are now coming to fruition as annual deliveries hit a new record high in 2024. The Sun Belt’s BTR epicenters—Phoenix, Dallas, and Atlanta—continue to expand due to favorable demographics, developable land, and continued institutional investment. Build-to-rent is also gaining traction in secondary and tertiary markets—places like Wilmington, Des Moines, and Chattanooga—where the current BTR pipeline is more than double the size of what’s been delivered over the past five years Sun Belt Markets Have the Largest Build-to-Rent Footprint Among the largest 100 U.S. metros by population, these are the 10 markets with the largest BTR footprint: Phoenix-Mesa-Chandler, AZ → 25,712 units Dallas-Fort Worth-Arlington, TX → 18,863 units Atlanta-Sandy Springs-Roswell, GA → 14,197 units Houston-Pasadena-The Woodlands, TX → 9,219 units Charlotte-Concord-Gastonia, NC-SC → 8,551 units Austin-Round Rock-San Marcos, TX → 6,124 units San Antonio-New Braunfels, TX → 4,539 units Tampa-St. Petersburg-Clearwater, FL → 4,204 units Orlando-Kissimmee-Sanford, FL → 4,084 units Jacksonville, FL → 3,873 units Even as scattered-site acquisitions have cooled down over the last couple of years, big names like J.P. Morgan Asset Management are continuing to invest, propping up the investment category’s resilience. Even with rent prices cooling off, the long-term BTR vision for as well as Atlanta, Charlotte, and primarily Texas and Florida metros, is sustaining a growing footprint.  Smaller markets are not getting left behind either. While BTR momentum remains strong in Sun Belt giants, it’s the next tier of markets that may offer investors the most runway. In places like Colorado Springs (+260%), Durham (+228%), Richmond (+222%), and Wilmington (+185%), the pipeline of future build-to-rent supply is more than double what’s been delivered over the past five years.  These surges point to shifting investor focus toward affordable, fast-growing metros where competition is lower yet demand remains strong. Top 40 Housing Markets with the Biggest Footprint of Single-Family Rentals Built-to-Rent Units Big Picture Build-to-rent has moved beyond its niche status, emerging as an investment category with staying power, driven by long-run demographic demand and an active pipeline stretching across both Sun Belt hubs and fast-growing secondary markets.

We’re talking to real estate investors all over the country and hearing the same question: “The real estate market’s adjusting — doesn’t that mean I should wait?” It’s a fair question. After years of rapid appreciation, bidding wars and historically low rates, today’s market feels… different. Prices in some areas are flat. Interest rates are higher. Some investors are hitting pause. But at LendingOne, we believe this kind of market shift doesn’t mean danger — it means balance and in many cases opportunity for investors who know what to look for. In this article we’ll break down what a “market adjustment” really means, what the data says in mid-2025 and how smart investors are using this period to buy with more control and less competition. What Does a “Real Estate Market Adjustment” Really Mean? First, let’s define terms. A market correction usually means a big decline — 10% or more in asset values. A crash is worse, like 2008. But a market adjustment is neither. It’s a natural, even healthy, rebalancing after years of rapid growth. Between 2020 and 2022 US home values rose over 40% in some areas due to historically low rates, remote work and limited inventory. That wasn’t sustainable — and today’s slower pace is more in line with long term trends. Why Adjustments Create Openings for Investors When the market cools, here’s what happens: Competition Declines Fewer casual buyers and over-leveraged investors are bidding on deals. That means: More time to analyze properties More room to negotiate price and terms Better chance of winning without overpaying. Sellers Get More Motivated Sitting on the market longer means sellers start to make concessions: Price drops Repairs Rate buydowns Closing cost credits These incentives can change your return profile — and they’re more common during market slowdowns. You Can Focus on Fundamentals In hot real estate markets speed often wins. But in balanced or cooling markets quality wins. You can: Run thorough comps Forecast cash flow with more certainty Take your time inspecting the property Avoid buying on emotion That’s how disciplined investors build wealth — not by chasing hype, but by buying good properties at fair prices. Common Investor Misconception: “A Slower Market Means More Risk” Actually it’s the opposite. Real Estate Markets that grow too fast often have hidden risks: Inflated values Short term speculation “FOMO” purchases with thin margins A slower market means better underwriting, more rational pricing and longer hold times — all good for disciplined investors. What Should Investors Be Doing Right Now? Here’s what LendingOne recommends: Stick to Your Buy Box – Know your numbers. Focus on properties that cash flow at today’s rates — not hypothetical ones. Reconnect with Off-Market Channels – Agents, wholesalers, property managers — the best deals may not be on Zillow. Get Your Financing Lined Up – The investors moving fastest are the ones with capital lined up and lending terms locked in. Don’t Confuse Caution with Paralysis – Being thoughtful is wise. But letting fear freeze you out of a good deal? That’s costly over time. Final Thought: Adjustments Are When Portfolios Are Built When everyone’s rushing in it’s hard to win. When people start pulling back — that’s when long term investors get serious. This isn’t 2008. It’s not even 2020. It’s 2025 — and the market is just finding its footing after several crazy years. If you’ve been waiting for the market to “normalize” good news: It already has. What you do next depends on whether you see that as a threat — or a window. Want to Talk About a Deal in Today’s Real Estate Market? We can help. → Talk to a LendingOne Advisor today about market trends, current loan options and how to take advantage of today’s market with the right financing strategy. Let’s make the adjustment work for you.

Let’s not beat around the bush — financing real estate in 2025 is more expensive than it has been in years. As of late May, the average 30-year fixed mortgage rate is 6.86% and many investors are wondering if deals can still work. At LendingOne, we hear it all the time: “Rates are too high — I’m just going to wait until they come down.” But waiting on rates — just like waiting on prices — has real risks. The truth is, higher rates don’t eliminate opportunity. They reshape it. Let’s break down what’s going on with rates, why this market still works for smart investors and how to structure deals that make sense at today’s rates. What’s Really Going On With Rates? As of May 23, 2025: The average 30-year fixed mortgage rate is 6.86% 15-year fixed is averaging 6.13% 5/1 ARMs are sitting at 6.28% These rates are way above the super low rates of 2020–2021. But they’re also far below historical highs. For context: In the 1980s, mortgage rates were over 16% Between 2000–2010, rates averaged 6.3% From a 50-year historical view, today’s rates are close to the long-term average So this is normal — and investors who learn to navigate this will have an edge. Why High Rates Aren’t a Deal Killer Real estate investing isn’t about getting the lowest rate — it’s about getting the right deal that works at today’s terms. Here’s how smart investors are approaching it: They’re Buying Based on Cash Flow — Not Rate Alone Let’s say you buy a rental property at 6.9% interest and it still cash flows. Would it be nice to finance that at 5.5% instead? Of course. But if the deal works now — it’s already a good deal. When rates drop later (and they will) you can refi. But the cash flow and equity you’re building in the meantime doesn’t wait. Smart investors lock in a deal they like and refi later if/when rates improve. They’re Using Creative Financing Structures Many LendingOne borrowers are: Choosing interest-only loans to reduce initial payments during renovations of fix and flips. Using the BRRRR strategy to lock in short-term bridge loans to then refinance later into a long-term hold.  Lock in now with current rates and refinance later when rates drop  These structures mitigate the impact of high rates — especially for investors with defined exit strategies. They’re Negotiating More Aggressively High rates mean fewer buyers, which often means more motivated sellers. According to Redfin: 44% of home sellers offered concessions in Q1 2025 Days on market has risen to 40+ days on average, giving buyers more leverage  This creates room for: Price reductions Seller credits (rate buydowns, repair credits, etc.) Favorable terms in off-market deals So while rates may be higher, the total deal structure can actually be more favorable. Real-World Scenario Let’s say you’re buying a multifamily property listed at $650,000. At a 6.9% interest rate on a 30-year loan, your monthly principal and interest is about $4,285. That sounds high — until you see: The gross monthly rent is $7,800 You negotiate $10,000 in seller concessions You plan to refi in 18 months if rates fall to the projected 6.0%–6.2% By year two, your effective cost basis may be significantly reduced — and you’ll already have built equity, collected rent and improved the property value. When you do this: If rates drop,  stay flat or rise slightly, you’re still not investing. And in the meantime, you’ve lost potential rental income, appreciation and deal opportunities. Waiting for the “perfect” rate often means missing the best deals. How to Invest at Today’s Rates We recommend to LendingOne clients: Underwrite conservatively. Run numbers at current (or slightly higher) rates to stress-test the deal. Prioritize cash-flowing assets. Passive appreciation is uncertain. Income pays the bills. Use bridge or interest-only options when appropriate. Especially helpful for value-add and fix-and-flip projects. Have an exit plan. If you plan to refi, know when and under what conditions you’ll do it. Talk to a lender early. Get clarity on loan terms, amortization schedule and cash requirements — so you can move fast when a deal appears. Final Thought: Rates Are Just One Variable It’s easy to get fixated on rates. They’re headline-grabbing and easy to compare year over year. But the best investors see the big picture: Cash flow Equity gain Market growth Negotiation leverage Long-term wealth creation Rates matter. But they don’t determine success — your strategy does. Want to See if a Deal Still Works at Today’s Rates? We’ll help you analyze it. → Talk to a LendingOne Advisor today. We’ll run through financing scenarios, compare structures and help you decide if now is the right time to move — even with rates where they are. Because waiting for the “perfect” conditions? That’s rarely how great portfolios are built.