I’m not here to tell you I have all the answers. But I can tell you this—multifamily investing is far from dead.
There’s a ton of noise out there:
❌ “Interest rates are too high—now’s the worst time to invest!”
❌ “Cap rates are expanding, values are tanking—just wait it out!”
❌ “Investors are sitting on the sidelines, so you should too.”
I hear it all the time. And honestly? I get it.
I’ve felt the pain personally. Deals I thought were going to perform didn’t hit projections. Expenses ran higher than expected. Raising capital isn’t as easy as it was in 2021-22. But that doesn’t mean I’m quitting.
In fact, I’m doubling down—just in a smarter, more calculated way.
Today, I want to share exactly how I’m adjusting my strategy for this market shift, what I’m seeing on the ground, and where I still see real opportunity for investors like you and me.
📊 What’s Actually Happening in the Market?
I’m not going to pretend I have a crystal ball, but I am in the trenches every day—networking with brokers, raising capital, and trying to solve problems on the deals I already own. Here’s what I’m seeing firsthand:
📌 Debt is expensive. Most lenders are offering loans in the 6.5% – 7.5% range, which makes it tougher to hit strong cash flow numbers. DSCR requirements are also tighter, so you need to bring more money to the table.
📌 Cap rates have expanded. If you bought in 2021-22 at a 4-5% cap rate, you’re probably not feeling too good right now. Today, you can buy at a 6-6.75% cap for C-class deals and 5.5-6% for B-class. That means valuations have dropped.
📌 Investors are more cautious. I’m still having great conversations, but many investors are asking harder questions,expecting higher returns, and weighing their options carefully before jumping into a deal. It’s no longer easy money—capital raising takes real effort.
Does all of this sound scary? Sure. But it also means that the playing field is wide open for serious investors. The ones who know how to find good deals, negotiate well, and structure creative financing will win.
📍 Where I’m Looking for Deals Now
I don’t pretend to be a market guru, but I do pay attention to where people are moving, where job growth is happening, and where I can still find cash flow.
Right now, here’s where I’m focusing my attention:
✔️ Orlando, FL – Strong job growth (4.5% YoY), a thriving tech and tourism sector, and steady rent growth.
✔️ Dallas-Fort Worth, TX – A business-friendly market with 300+ people moving in daily.
✔️ Charlotte, NC – One of the fastest-growing metros, with affordable workforce housing still in demand.
✔️ Indianapolis, IN – Cash flow is still possible here compared to overheated Sunbelt markets.
I’m personally staying away from high-tax, high-regulation markets like San Francisco, NYC, and parts of Austin, TX—where too much supply is slowing rent growth.
👉 Lesson learned: If you’re going to invest right now, it needs to be in a market where people WANT to live and where landlords aren’t handcuffed by bad policies.
💡 How I’m Adjusting My Investing Strategy for 2025
With the market shifting, what worked 2 years ago doesn’t necessarily work today. Here’s what I’m doing differently:
1️⃣ I’m Getting More Creative with Financing
The days of easy, low-interest debt are gone. So I’m structuring deals differently:
✅ Seller financing – If the seller has a low-interest loan, I’m asking them to finance part of the deal.
✅ Assumable loans – Some deals still have sub-4% debt that you can take over.
✅ Partnering on deals – I’m open to joint ventures and co-GP opportunities to make deals happen.
2️⃣ I’m Focusing on Operational Efficiencies
🔧 Cutting expenses – Instead of spending $2,000 per unit on every turn, I’m figuring out which improvements actually drive rent increases.
🏢 Adding revenue streams – Bulk internet, pet fees, covered parking, and storage are all small levers that add up over time.
👷 In-house maintenance – I’m testing hiring a full-time maintenance tech instead of using contractors for everything.
3️⃣ I’m ONLY Buying Deals That Cash Flow Day One
I see a lot of investors still banking on future appreciation to make their deals work. That’s a mistake in this market. If a deal isn’t cash flowing at today’s interest rates, I’m passing.
Bottom line: If I can’t find a deal that makes money right now, I’ll wait. I’m not in a rush.
📢 Final Thoughts: Now Is Not the Time to Sit on the Sidelines
I see too many investors waiting for the “perfect” market conditions before making a move. That’s a mistake.
Yes, be cautious. Yes, underwrite conservatively. But also be ready to strike when the right deal comes along.
The investors who take action now, adjust their strategies, and solve problems are going to be the ones who win big when the market turns.
If you’re serious about multifamily investing and want to connect, let’s chat. 🚀
📢 FREE RESOURCE: Want to build credibility with brokers? Grab my FREE Multifamily Credibility Kit – Download it here 👉 www.smallaxecommunities.com
💬 What’s Your Take? Drop a Comment Below! 👇
Are you investing in 2025, or are you sitting this one out? Let’s discuss!
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