With Local Investors Out-Pacing Builders, What’s Your Rehabbing Strategy for 2025?

[Andy Gonzales]

Hey everyone,

I came across some interesting data lately: according to an August 2025 report, local small-scale investors are now renovating and putting more single-family homes back on market than new builds in many markets. 

At the same time, materials and labor costs remain elevated, and supply chain issues (tariffs, etc.) could further squeeze rehab timelines and budgets. 

With that in mind, I’m curious what you all are seeing and how you’re adapting your rehabbing game.
Here are a few questions:

• Are you shifting toward smaller “light-rehab” deals rather than full gut-renos because of cost/time pressures?

• How much cushion are you building into your timeline/budget for rising material and labor costs?

• Given that local investors are moving fast and crowding some markets, are you changing your target markets or deal types (for example moving to tertiary markets)?

• For those actively rehabbing now: what’s your biggest pain point (contractors, materials, hold time, resale risk)?

Would love to hear your recent wins and your mistakes—since this market feels like it’s changing fast.

— Andy