@Bryan HartlenManaging low-end properties can be demanding due to higher tenant turnover, increased maintenance needs, and frequent rent collection issues.

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.

Case in point, years ago we used Olympic paints from Lowes, which were carried for a long time.

I also watch occupancy rates and adjust if bookings are low.

You’ll pick up so much just by listening to people who’ve been through the highs and lows of the market.

a lot of people will poo poo this, but I also live in a market where cash flow is low, property taxes are high and properties are expensive (which is a relative term).

The low purchase price, combined with an established market demand, made this an ideal transaction for a fast turnaround and profitable outcome.

The low purchase price was a big part of it.

If there is a property manager, your success rate is going to be very low.   

My plan is to use a low down payment conventional loan, and with the factors you mentioned, it’ll likely be tough to find a property that breaks even.