As inflation drives rent growth, properties in stable markets like the Midwest can continue to deliver returns even in higher-rate environments.Market Conditions Favor Real Estate RecoveryThe commercial real estate (CRE) market has faced significant challenges in recent years, but signs point to a recovery:Bottom of the Market Cycle: CRE appears to have reached its low point in late 2024, with 2025 marking the start of a slow recovery phase.Limited New Supply: High interest rates have curtailed new construction, which should drive rent growth in the coming years.Policy Changes on the Horizon: There is growing discussion about potential policy shifts under the new administration, including a return of 100% bonus depreciation and lower interest rates.

Since this is a new construction, I projected a low capex.

Luckily, I am in construction and have a background in renovations. 

I'm a real estate investor specializing in STR properties, a realtor, and I own a construction company.

I'm an investor (STR properties), realtor, and own a construction company near Texas A&M in the Bryan / CS area but travel to the 903 frequently to visit family.

., electrical, plumbing).Project Timeline:Start Date: For the portion of work they are completing.Completion Date: Set realistic deadlines for their tasks, adjusted to your overall project schedule.Liquidated Damages:Specify a daily amount to be deducted from their final payment if they fail to meet deadlines (with exceptions for factors beyond their control, like severe weather).

Have an Insurance adjuster rep work for you in settling the claim with the insurer.E. 

A new construction ADU will be appraised significantly less than the hands-off construction cost.

You may want to adjust your criteria a bit and sacrifice projected cash flow for stability and projectability.All the best to you in your investment journey!

Further enhancements included constructing a back deck and repainting the interior to modernize and enhance the home’s appeal.