With interest rates higher and margins thinner, many investors are asking the same question: What types of real estate deals are still getting approved right now?
The answer isn’t flashy, and it’s not universal. Today’s acquisitions environment rewards discipline, conservative underwriting, and a willingness to walk away. Here’s what we’re actually buying, what we’re passing on immediately, and the market forces shaping those decisions.
What Types of Deals Are Making It Through Underwriting?
The deals that consistently make it through underwriting today are modest, fundamentals-driven investments, primarily single-family rentals in markets with stable demand and manageable operating costs.
These opportunities typically share a few common characteristics:
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Purchase pricing that reflects current interest rates, not peak market conditions
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Rent assumptions grounded in in-place market data, not future growth projections
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Property taxes and insurance costs that remain predictable and sustainable
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Locations with steady renter demand and limited new supply pressure
New construction opportunities can still work when builders offer meaningful incentives, such as rate buydowns or credits that reduce monthly debt service. On the resale side, pricing discipline is critical. Thin cash flow can still be acceptable when risk is controlled and assumptions are conservative.
What Types of Deals Are We Walking Away From Immediately?
Knowing when not to buy is just as important as finding the right opportunity.
We are typically walking away from deals that:
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Depend on aggressive rent growth to reach breakeven
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Are located in areas experiencing sharp increases in insurance or tax burdens
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Only pencil under ideal conditions with no margin for error
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Are priced based on seller expectations from prior market cycles
If a deal requires appreciation to succeed or assumes operating costs will normalize on their own, it rarely survives underwriting in today’s environment.
Macro Trends Influencing Real Estate Buy Decisions
Several broader market trends are shaping acquisition strategies right now:
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Higher interest rates have forced tighter underwriting standards across the board
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Insurance volatility is materially impacting returns in certain regions
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Capital discipline has returned, slowing speculative buying activity
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Rental demand remains strong in supply-constrained Midwest and Southeast markets
We are also seeing increased flexibility from builders who are actively using incentives to keep transactions moving. These structures can materially change deal performance when applied correctly.
What Excites Us and What Makes Us Cautious Right Now
What excites us is the return of rational pricing and fewer competing buyers chasing marginal deals. This environment creates an opportunity for investors who are patient and willing to underwrite conservatively.
What makes us cautious is margin compression without improved fundamentals. Rising expenses, regulatory uncertainty, and overbuilt pockets of inventory require careful evaluation before capital is deployed.
The Bottom Line for Investors
Cash-flowing real estate deals still exist, but they are harder to find and easier to get wrong. Success today comes from asking better questions, underwriting conservatively, and walking away from more deals than you pursue.
Investors who prioritize fundamentals over hype are better positioned to navigate today’s market and build durable portfolios over the long term.
Thinking about buying in today’s market?
Our team reviews deals daily across multiple markets and underwriting scenarios. If you want a second opinion on a potential investment or want to understand what types of opportunities are actually working right now, start the conversation below.
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