I don't own any split levels. 

Only the South showed small annual growth, highlighting regional divergence in demand.Housing inventory remains tight. 1.18M homes, one of the lowest levels of 2025, limiting buyer options and enthusiasm.Despite the slowdown, some large markets, (Miami, Charlotte, Boston, Phoenix), still saw year-over-year increases in pending sales, reminding us that real estate is local.Affordability pressures and 𝑝𝑒𝑟𝑐𝑒𝑖𝑣𝑒𝑑 high mortgage rates are keeping many buyers sidelined, even as lower rates begin to modestly support activity.This isn’t a one-month seasonal blip.

Property Snapshot Location: Englewood, CO (80110)Lot: Corner lot — 0.28 acresMain Level: 2 bed / 2 bath (both full size)Lower Level:- 2 bed / 1 bath- Full kitchen & dining area- Private entranceAlready finished when purchased — layout retained and restoredParking: Dedicated access for the lower levelRenovation approach: restored original layout & kept character intact rather than gut itPossible Buyer Profiles I’m Considering1.)

Entry-level properties move faster, and margins are no longer forgiving for sloppy underwriting or hopeful pricing.But here’s the important part:A competitive market does not mean an unprofitable one — it means a more strategic one.Scranton’s 2026 Appreciation Changes the Math EntirelyAccording to national projections, Scranton is expected to see over 11% year-over-year appreciation in 2026.That appreciation is exclusive of forced value.Which means investors here aren’t choosing between: appreciation or cash flowThey’re stacking: market appreciation + renovation equity + rent growth + operational improvementsThat combination is exceptionally rare — especially in markets with relatively low barriers to entry.Appraisal Friction: The Real (But Manageable) Pain PointOne of the biggest challenges investors face in Scranton — and in most secondary markets — is dinosaur-aged appraisal methodology.Many appraisals still: lag real buyer demand, underweight stabilized rental income, & fail to reflect renovation quality accurately. 

Quote from @Erik Perotti: That’s fair — and I don’t think we’re actually disagreeing on the importance of deep, micro-level analysis.Where I’ve found some of these signals useful (including things like employment diversity) isn’t as a predictor of individual property value, but as a coarse filter earlier in the process.When I’m looking across dozens of cities, I’m not asking “will this deal work?”

If it doesn’t, I move on quickly.Once I decide a deal is worth deeper work, I don’t rely on online calculators.

That keeps the renter pool deeper than people outside the market sometimes expect.I agree on rents too.

No tool is perfect; they’re most useful for quick initial underwriting before you dig deeper into comps and local market data.

Have you ever had a deal declined or downsized because of limited flip history? How much experience did lenders require in your case?

To me, it feels more like a market that rewards patience, conservative assumptions, and knowing your market well.I wrote a longer piece laying all this out in more detail if anyone wants to dig deeper, but I’m genuinely curious what others are seeing.How are you thinking about leverage and underwriting heading into 2026?