All Forum Posts by: Drago Stanimirovic

Good morning, Ken!

It’s great to hear that you’re already active in the Southern Maine market. With your boots-on-the-ground approach, you’re in a strong position to find profitable flips. As you scale, make sure to factor in seasonality, renovation surprises, and buyer demand in different areas. Should you need fast and flexible financing to move on deals quickly, I’d be happy to help. Let me know how I can support your success!

Best of luck,
Drago

As we progress through 2025, real estate investors are keenly observing interest rate trends to inform their strategies.

The big question: Will interest rates drop this year?

📌 Current Landscape

In early 2025, the Federal Reserve maintained the federal funds rate between 4.25% and 4.5%, following a series of rate cuts in late 2024.

🔹 Federal Reserve Governor Christopher Waller anticipates gradual interest-rate cuts due to a robust U.S. economy and declining inflation.
📖 Source

🔹 However, not all Fed officials agree. Mary Daly of the Federal Reserve believes there is no urgency to cut interest rates until inflation reaches the 2% target.
📖 Source

📊 Market Projections

💡 Fannie Mae predicts that the 30-year fixed mortgage rate will average around 6% in 2025.
💡 The Mortgage Bankers Association expects rates to remain at or above 6.5% throughout the year.

📖 Source
📖 Source

🏡 What This Means for Real Estate Investors

While a significant rate drop is unlikely, stable or slightly declining rates can create opportunities for investors:

✅ Financing Opportunities – A stable rate environment makes it easier to secure financing for new acquisitions or refinance existing properties.
✅ Market Stability – Predictable rates allow for better financial planning and long-term investment strategies.

🔑 Investor Strategies for 2025

💰 Monitor Economic Indicators – Watch inflation trends, employment data, and Federal Reserve announcements for early signals of rate changes.

💰 Evaluate Financing Options – Consider fixed-rate vs. adjustable-rate loans, seller financing, and other creative funding strategies.

💰 Stay Agile – Be prepared to pivot investment strategies as market conditions evolve.

📢 Final Thoughts

While we may not see drastic rate cuts in 2025, the current environment favors smart, data-driven investing. Investors who stay informed and adapt to market trends will find strong opportunities despite rate fluctuations.

Are you looking for financing solutions for your next investment property? Let’s connect! 💼📩

#RealEstateInvesting #InterestRates #MortgageRates #InvestmentProperties #RealEstateFinance

Sure, we keep in touch! Feel free to reach out anytime.

Thanks James!

For a single-family rental (SFR) that's free and clear, meaning no mortgage, the acceptable minimum annual cash flow depends on your investment goals, location, and risk tolerance. However, a common benchmark is aiming for at least 6-8% cash-on-cash return based on your total investment (purchase price + rehab + closing costs).
Always factor in appreciation potential, tax benefits, and personal risk tolerance. In high-appreciation markets (e.g., CA), lower cash flow may be acceptable. In stable cash-flow markets (e.g., Midwest), aim higher.

Damien,

Build-to-Rent (BTR) is a great long-term wealth-building strategy, especially if you have a stable W2 and want to take a more methodical approach to investing. Since you're not rushing for a quick flip, you can focus on quality construction, tenant-friendly designs, and strong rental markets that yield solid cash flow and appreciation over time.

A few things to consider: Location is key. Target areas with high rental demand, job growth, and population increases to ensure strong occupancy and appreciation. Financing is different from buying existing properties. Many investors use new construction loans or bridge financing before refinancing into a long-term DSCR loan. Cash flow can take time. Since new builds require upfront capital, you might not see immediate returns, but lower maintenance costs and higher rents typically make up for it long term.

If you're serious about scaling with BTR, make sure you connect with experienced builders, property managers, and lenders who understand the strategy. When you’re ready, I’d be happy to help with financing solutions to make your next project a reality.

Drago

If you're looking to diversify your portfolio and maximize rental cash flow, the Midwest and Southeast continue to offer some of the best rent-to-price ratios in the country. These markets provide affordable entry prices, strong rental demand, and higher-than-average cap rates.

📊 Here are 5 top cash flow markets right now (based on recent market data from Zillow, Redfin, Rent.com, and local MLS reports as of early 2025):

📍 Indianapolis, IN
🏡 Median home price: ~$175K
💰 Average rent: $1,400 - $1,600
📈 Cap rate: 7 - 9%

📍 Kansas City, MO
🏡 Median home price: ~$200K
💰 Average rent: $1,500 - $1,800
📈 Cap rate: 6 - 8%

📍 Cleveland, OH
🏡 Median home price: ~$120K
💰 Average rent: $1,100 - $1,300
📈 Cap rate: 8 - 11%

📍 Birmingham, AL
🏡 Median home price: ~$160K
💰 Average rent: $1,300 - $1,500
📈 Cap rate: 7 - 10%

📍 Memphis, TN
🏡 Median home price: ~$150K
💰 Average rent: $1,200 - $1,400
📈 Cap rate: 8 - 10%

🔹 Why These Markets?
✅ Lower home prices = Higher rent-to-price ratio
✅ Strong rental demand = Consistent cash flow
✅ Higher cap rates = More profitability

If you’re looking to finance your next investment in one of these markets, let's connect! Whether it's Fix & Flip, DSCR Rental Loans, or BRRRR strategies, I can help you structure the right funding solution to maximize your cash flow.

📩 DM me if you’re ready to scale your portfolio in 2025!

#RealEstateInvesting #CashFlow #RentalProperties #BRRRR #PassiveIncome #RealEstateFinance #PhoenixFunded

Hi Shiloh,

You're onto a strong model, but I’d challenge you to think about scalability. Managing 20+ deals a year with individual partnerships could stretch your capacity. Have you considered raising a fund instead? Pooling investor capital could streamline acquisitions and reduce the complexity of one-off deals.

Best,

Drago

Benjamin,

You're on the right track by focusing on macro trends like job growth and population increases, these can justify investments even if the 1% rule isn't met. Leveraging your friend's connections in Provo could lower risk and give you a head start, especially if the market fundamentals are strong. Your target metros make sense, and direct flights are a convenience, but if Columbus or Huntsville offer better returns, they’re worth considering despite the extra travel.

For OOS investing, a property manager is highly recommended, especially for a first-time investor. While it eats into cash flow, it prevents costly mistakes and keeps operations smooth. Minimal or negative cash flow in the first year or two isn't uncommon, especially in appreciating markets, but make sure you have a plan to improve profitability.

When you're ready to move forward, I’d be happy to help with financing options to maximize your investment potential.

Best,

Drago

Hi Tiffany,

A good strategy could be testing one unit as a midterm rental when a tenant moves out. If cash flow jumps significantly, it might be worth keeping. Otherwise, selling and using the proceeds to scale your portfolio locally could accelerate your long-term goals. If you need help financing your next investment, I’d be happy to assist.

Drago