How are you actually financing deals that still work right now?

Question

Genuinely curious what’s working for people in today’s market.

From the lending side, here’s what I’m seeing pencil in real life

• DSCR on stabilized rentals Still one of the cleanest long-term plays. It’s less about squeezing max leverage and more about locking in survivable debt while waiting out rates.
• Short-term bridge → refinance On paper it looks expensive, but when the exit is clearly defined, it’s often the only way to unlock deals banks won’t touch upfront (vacant, heavy value-add, messy ops).
• Off-market + flexible capital This is where most of the margin is coming from right now. Lower basis + flexible terms often matters more than rate shopping.

DSCR on stabilized rentals Still one of the cleanest long-term plays. It’s less about squeezing max leverage and more about locking in survivable debt while waiting out rates.

Short-term bridge → refinance On paper it looks expensive, but when the exit is clearly defined, it’s often the only way to unlock deals banks won’t touch upfront (vacant, heavy value-add, messy ops).

Off-market + flexible capital This is where most of the margin is coming from right now. Lower basis + flexible terms often matters more than rate shopping.

What I’ve noticed: the deals closing aren’t necessarily “home runs” — they’re the ones with clear exits, conservative assumptions, and capital that matches the business plan.

Curious what others are seeing:

• What structures are actually working for you?
• What isn’t penciling anymore?
• Anyone adjusting hold periods or leverage targets?

What structures are actually working for you?

What isn’t penciling anymore?

Anyone adjusting hold periods or leverage targets?

Always interested in hearing what’s working, or not, on the ground.

David Krulac · Answer

We bought new builds in 2025 with below market fixed financing of 4.25%, 4.25% and 4.75% financing arranged through the builder and mortgage company. All are positive cash flow LTRs.

Jeff Roth · Answer

Hi Caleb-

Great question! You asked how are people financing deals that cashflow and make sense.

Most of our investors are using Debt Service Coverage Ratio (DSCR) loans to finance their purchases.

This is not hard to do as there are many markets in Michigan with strong cashflow.

They are also looking for value-add opportunities so they can raise rents and value and refinance out their down payments and go shopping again.

To Your Success!

Mark Bassali · Answer

Seeing the same:

-Lower leverage, longer holds

- Bridge only with real control

- Basis > rate — off-market or distressed wins

Dead deals: thin spreads, aggressive rent growth, reliance on rate cutsThe deals closing aren’t sexy. They’re disciplined, survivable, and structured to hold.

Danny Gonzalez · Answer

@Caleb Triumph What’s still working for us is strong value-add in tertiary markets.

I invest personally in Birmingham, AL and help out-of-state clients do the same. We’re still consistently finding BRRRR deals that refinance around 75% ARV and cash flow on the back end.

These aren’t home runs, like you mentioned. They’re like doubles. The monthly cash flow isn’t massive, but the deals allow investors to recycle capital, reduce basis, and steadily build a portfolio.

The sweet spot we’re seeing in Birmingham:

• ARV: ~$150k–$175k

• Rent: ~$1,400–$1,600

• Exit: DSCR or portfolio loan around current market rates

At ~6.5% interest, these deals still work if the basis is right. The margin is coming from the buy and the rehab, not leverage or appreciation.

Curious if others are seeing similar results in secondary or tertiary markets.

How are you actually financing deals that still work right now?

How are you actually financing deals that still work right now?

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