And therein lies the risk of high-leverage.  

Most of my CFO clients that are in residential development are looking for IRRs (usually over a minimum 5-year period) in the high teens and the commercial developers are looking in the low to mid 20% range.

.- If interest rates remain high, this is further upward pressure on rents in the near-term, as the alternative to renting - buying a home with a mortgage, is expensive - this should increase demand for rentals. - Rents are also a function of supply - 2024 saw the most new construction of multifamily units in American history (nearly 575,000 estimated 2024 deliveries of new multifamily inventory), and 2025, while not a record setting year, will see deliveries top 500,000 again - a huge supply increase. 

Maybe the P trap under the sink is not filling with water correctly and allowing sewer gas to come back in.  

Creative financing can help sellers make more money, solve pain points, gets them the money they need, and help them avoid a high tax bill.

Here's the problem: They are not a sustainable asset for most to own; they are difficult and costly assets to exit through a sale; if you achieve favorable refinances, you may be able to use those funds to buy other (hopefully better assets) but are now faced with operating highly leveraged bad assets. 

If one is a high W2 earner, real estate is not the place.

@Greg Kurzner Thank you for speaking highly of me.

to be clear - lots of other issues, lots of other challenges, and BRRRR is difficult right now with interest rates so high. 

I would highly recommend looking into syndications!