Would love to hear how others are using leverage responsibly in this higher-rate environment.

@Case Mccarthy great question, Depends on the competitive environment, The average age in Maine is like 45... so we can't find many people to mow lawns and decided to keep it in house. also the margins at scale work out for both the owner and the management company. we do the same with snow removal

We are still in an environment where carriers are extremely sensitive to claims, especially those that don't arise from catastrophic weather events (at least in the Midwest market). 

There are options exterior wise AND in our approach to tenants (there are definitely a few problem units that make the area feel unsafe).Boosting rent would be great, but the real goal is to create an environment where residents want to pour back into the community and where people FEEL safe. 

If we build them right, we still capture some equity and minimize the capital we need to bring in,  but we’re definitely not in the same environment we were a few years ago.I actually just went under contract on what would be a “classic” BRRRR again, a heavily distressed property that’s already gutted (which I love, fresh slate).

For most buyers, RE is unlikely to be the best option in this environment.  

Median home prices are around $365,000 as of late 2025, with annual appreciation rates holding steady at 3-4%, providing a balanced environment for building equity while maintaining affordability compared to coastal or Northeastern markets.

As in all things in life (like choosing a spouse)for instance, it's incumbent upon us to examine our individual personalities regarding whether a proposed partnership would be a good fit or a disaster in waiting.In 2007, when I lost more than $130,000 in the stock market,I learnt a permanent lesson that stuck with me till today.I discovered that I was a control freak.I needed to always know how my actions directly related to my results, and most often like to retain the ability to change my mind even if others would find such reversal a stupid idea.Seeing how much control I didn't have on how my stocks performed in 2008 despite all the information I had consumed for several months regarding value investing and how to analyze a company's fundamentals scarred me for life.It made a real estate investor out of me.The safety and assurance that I was taking sole responsibility for the calls i made and the risks I decided to take was a calming refuge.Having been a Pro-member on BiggerPockets for as long as I've been has its perks.It gives one a front row seat to see in slow motion the interesting evolution of the component parts that make up this mammoth industry.I watched in amusement as one member arrived as a total newbie in 2018 with a welcome post, voraciously consuming unsolicited counsel on the member forums for a few months and then posted a "success story" of his deals after 6 months.Within a year, he had his own podcast and is now buying large apartments as a syndicator pooling investors' money.To be clear, this is not a hate post.I certainly do not begrudge people "crushing it" in record time.Nonetheless, as a 'senior' member of this community who has seen this movie before,I do feel a lonely cautionary voice in the wilderness is needed at this point.We are in an environment of unprecedented cap rate compression and record low interest rates which is only headed in one direction after this is all over.Yes, make no mistake, the music will soon stop.That has very little to do with an upcoming election and is regardless of who wins the White House or who controls congress after November.If you've listened to Kevin Bupp and Rod Khleif, you know what happened to their portfolios in 2008.These were no amateurs, as a matter of fact, they had many years of investment experience when the music stopped.They both weathered the storm and came back stronger and that is why I remain a shameless fan of both men till today.Several others were not that lucky, and you will never hear their names.In this space today, there are investors and there are educators.The educators have taken over the habitat.That is why there are now more podcasts on real estate than I can get through in a working week.Real Estate education is so very lucrative now that it is possible to make way more money from podcasts and books than in actual real estate investment for some gifted marketers with smooth tongues and gifted content creators.We are in the information age after all, and youtube millionaires are now perhaps outpacing patient real estate buy and hold landlords in the passive income/ cash flow game.Belonging to a $25,000/year mastermind and attending a syndication bootcamp does not insulate anyone from catastrophe.

Quote from @Collin Hays: One of the challenges in the current STR investment environment is that, in the 2018-2023 time span, the investment was being touted as a money tree.

I find it should scale easier than a flat basis point because you want to allow the LO flexibility to compete in an environment where borrowers are going to show.