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.

Typically max leverage is 70CLTV - very higher Prepayment penalties and be ready for rates north of 12% - I answer this question all the time.

They typically will have data and newsletters as well they can send you.

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.

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

Typically, we are shooting for top of foundation to be 24 inches higher than the road and at least 36 inches above the bottom of the drainage.

Quote from @Melanie Baldridge: Why I like investing in real estate more than 401(k)s.Both offer tax deferrals, but here's the difference:If you're making pre-tax contributions to your 401(k), then withdrawals = ordinary income tax.With real estate gains, you're paying capital gains tax (which is typically lower).Plus, RE investors get:1.