Inflation Meets Estimates, Rate Cut Still LikelyWeek of August 25, 2025Hey everyone,Last week’s inflation report didn’t shake anything up — and that’s actually a good thing.

For a very limited time, nationwide builders are offering aggressive incentives NOW that include temporary rate buydowns with a final fixed rate as low as 5.75%.

Even with last year’s rate cuts, (and more expected soon), demand hasn’t rebounded.

https://wolfstreet.com/2025/09/04/despite-all-the-shouting-b...Just when the “cut rates now” chorus is reaching a fever pitch, Wolf Street drops a reality check: unemployment claims are flat year-over-year and even better than two years ago, and the four-week average remains historically low.

But here’s what most investors don’t know: Buying in a high-rate, high-cap-rate environment can set you up for stronger long-term returns than buying in a low-rate, low-cap-rate one. 

Now with the rates as high as they are now these deals don't come around very often, but when they do they move fast which means you have to move fast.

For investors using DSCR loans, what drives your decision more — locking the lowest possible rate, or pushing leverage to free up cash for more deals?

Both typically close in under 30 days, and we see very little difference in closing times between lenders.Interest RatesInterest rates vary more than closing times, but lenders often complicate things, making comparisons difficult.

But with interest rates being what they are now, I’m wondering if that 8-12 % CoC target is still realistic (after underwriting vacancy, repairs, CapEx, etc.)Thanks in advance for sharing your experience.

In my experience, a high welfare rate in an area isn’t automatically a detriment it depends on how you structure your investment and manage your properties.Key considerations:Tenant screening & management: Even in areas with higher assistance rates, thorough screening and clear lease agreements can mitigate risks.Market dynamics: Areas with higher welfare numbers sometimes have more stable rental demand because tenants rely on assistance programs, which can reduce vacancy risk.Local laws & support: Understanding local landlord-tenant regulations, eviction rules, and available support programs is critical to protect your investment.Property type & location: Investing in well-maintained properties in desirable neighborhoods, even in high-welfare areas, can still yield strong returns.Ultimately, it’s about balancing risk and opportunity.