If you have always thought about buying real estate, and you want to build long term wealth and financial freedom, then now is a great time to start looking for your first rental property. If you already own some rentals, now is a good time to look for opportunities to buy more houses at a discount from sellers who are motivated to sell. Sellers that are overleveraged (like landlords who purchased in 2022) make perfect candidates for being willing to sell at a discount. Newbie investors who overpaid when the market was hot make perfect candidates, too!

Higher Inventory Means Sellers Are Much More Motivated To Sell

Inventory has substantially increased in every MLS in the U.S. In South Florida, active listings on my local MLS have increased exponentially every year since the real estate market peaked in July 2022. That year (2022), there were just 15,000 listings on my local MLS. The following year (2023), listings doubled to 30,000. In 2024 listings increased to 45,000, and today, on my local MLS in 2025 there are now more than 65,000 listings. This rise in houses listed for sale on the MLS has resulted in houses sitting much longer on the MLS and not selling. Because interest rates have increased, there are a lot less buyers. Sellers who have become desperate have been slashing their asking prices as their listings sit on the market longer and longer. This is not happening in all markets, only in some of the markets that have seen massive increases in inventory. But I feel that this will flow through to all markets eventually. You should start your search in the markets where inventory has increased the most. That is where sellers are the most desperate.  The key is to find a motivated seller. One way to do this is to look for homeowners who are in foreclosure or who are delinquent on paying their property taxes. When you can’t pay your mortgage or your property taxes, time is your enemy. Eventually, you will need to sell. And that is why, as an investor, you should be learning how to market to these sellers.  

Home Prices Have Declined Substantially in Many Markets

In many markets, prices have pulled back substantially from the peak pricing in mid 2022. I am seeing many markets where prices are down as much as 20% from the peak. In some markets, the declines are even more. Many States have had substantial price reductions. In Florida, cities like Punta Gorda, Cape Coral, North Port, Jacksonville, Tampa, and Palm Bay have been crushed. Inventory has increased dramatically and prices have been slashed, and listings are still sitting with few offers. The only houses that are selling fast are the lowest priced foreclosures and bank owned properties, and the damaged properties. Many homeowners who purchased at the peak in these markets are now underwater on their mortgage and have no equity in their home. If prices continue to decline (which I believe they will) then I expect many of these homeowners will stop paying their mortgage, and some of these homes will become short sales and foreclosures. I am already seeing evidence of this now as more and more short sales are showing up on the MLS. Make sure you know how to buy foreclosures, short sales, and bank owned properties for pennies on the dollar and how to bid on online auction sites. I teach my students how to do this at the Foreclosures and Bank Owned Properties Boot Camp.

The FHA Loss Mitigation Options Are Ending in September

Rents Have Increased Substantially Over the Past Few Years

In many cities, rents have increased substantially because of inflation. This is most evident with the Fair Market Rent that HUD is willing to pay for Section 8. You can see the HUD Fair Market Rents for Section 8 by clicking on this link

I am seeing very good price to rent ratios on the lower end of the market. There are deals out there today that can be purchased at numbers that make sense. I am seeing quite a few properties that are good candidates for the buy, repair, rent, and refinance strategy. You should think about buying some of these properties now, especially if you are looking to buy your first rental property. Learn how to find these opportunities by attending the Buying Rentals and Building Wealth Boot Camp which is coming up. 

There Are Many Creative Financing Opportunities 

Those underwater mortgages and homeowners who have zero equity, which we discussed above, have one thing in common. If the homeowner purchased their property in 2021 or 2022 or even 2023 they purchased at prices that are higher than today. The interest rate on their mortgage may be very low and in some cases lower than 3%

Sellers are becoming more open to selling subject to their existing mortgage (where you can buy their house and take over their mortgage payments). Ideally, you would want to do this with no money down. For example, if a homeowner purchased a house for $300,000 and put 20% down they put down $60,000. Their home today may only be worth $250,000. If they were to sell, after factoring in closing costs and commissions, they will not receive any money from the sale of their home and may even need to come to the closing with cash. Offering to buy their house for the balance of the mortgage (especially if it’s a low interest rate 3% mortgage) is a smart move for you as an investor, and it’s a relief for them. It’s truly a win win situation.

I anticipate that there will be more and more opportunities to do this in 2025 and 2026. Buying a rental property with no money out of pocket is the best way to get into real estate since it gives you all the long term benefits of owning real estate without having to lay out any cash. Older sellers who want to sell and downsize, who have had their property listed for a long time and have not been able to sell, may be much more likely to consider seller financing. Look for homeowners with no mortgages who own their property free and clear and structure a deal to buy their property with the least amount of money out of pocket possible. If you use Propstream, search for homeowners with 100% equity to find sellers with free and clear properties. Approximately 40% of all homeowners own their home free and clear, so there are many homeowners out there who are retired and thinking of downsizing that you could be marketing to. 

Real Estate Is An Inflation Hedge & Has Many Tax Benefits

Real estate is a solid inflation hedge—rents and property values typically rise with inflation. Rent growth is still outpacing inflation. And in this economy, you want something that protects against inflation. Owning a rental property where you can have inflation protection built in by having both the price of the real estate go up over time and the rent that is paid to you go up over time is a win in any market. I am seeing this now in Section 8 Rentals. I anticipate that in the future we will see this in other markets too. Be ready to buy these Section 8 Rentals. And if you see something in the buy zone, don’t wait – buy it now!

Rental properties offer other tax deductions, including depreciation and amortization. Mortgage interest, insurance, and other expenses related to the rental property are all deductions, which means you will pay less taxes if you own a rental property. You can also use cost segregation to accelerate tax benefits.

Prices Are Going Down, and Interest Rates Will Go Down Too

Prices are coming down slowly, and while interest rates are still high, I anticipate that as prices come down interest rates will probably go lower in the future as the economy stumbles. If you find a good deal today, don’t be afraid to buy it if it has equity and positive cash flow. You may have an opportunity to refinance when interest rates drop. As prices come down, and as interest rates drop, more and more properties will come into the buy zone (especially rental properties). Right now, I am only seeing this in certain areas, but be on the lookout in 2025 and 2026 for that perfect rental property at the right price when it comes into your buy zone. Be ready for this by preparing now. Know your target market and learn it well so you will be ready to buy when the time is right. 

Choose Cities With Population and Job Growth

Choose a market with strong population and job growth. You want to buy real estate in a city where people are moving to (not moving from). Focus on better quality neighborhoods (if you can). Today, most of the deals that I am seeing that make sense are in the lower income neighborhoods and make good Section 8 Rentals. As prices come down, better quality neighborhoods will open up. Right now, the big opportunity is in Section 8 Rentals. That is what we are focusing on and what we are teaching our students. Learn the Buy, Repair, Rent, Refinance Strategy and implement it. We teach our students how to do this at the Buying Rentals and Building Wealth Boot Camp

Avoid Condominiums and Homes with HOA’s

While you may live in a condo or own a home with an HOA, as an investment for a rental property, you should avoid all condos and also avoid all properties that have HOA’s. There is too much uncertainty with condos because of the new regulations, including milestone inspections for structural integrity, requirements to fully fund reserves, and special assessments.  HOA’s have too many regulations and add an additional monthly cost to you as an investor which reduces your return on investment. As a rental property owner, you don’t want the HOA telling you what you can and cannot do and meddling with your investment property. Focus on single family homes in decent areas where there is no HOA and there are no rental restrictions. 

Focus on Positive Cash Flow Properties With Equity

Cash flow is very important. It’s more important than location. If you don’t have positive cash flow, then owning a rental property will be a headache instead of a blessing. Many landlords have learned this the hard way. You must only buy rental properties that have positive cash flow. Make sure your property has positive cash flow after accounting for all costs, including interest, taxes, insurance, repairs, and vacancies. Never buy a rental property if it does not have positive cash flow. Also, make sure you are buying at a discount from a motivated seller. Your property should have equity on the day that you buy it. If your house will not appraise for more than what you paid, then don’t buy it. The only way to get equity when you buy is to purchase from someone who is very motivated to sell. Disgruntled landlords with damaged, vacant properties will often sell at a discount to market value. Homeowners who are in pre-foreclosure or foreclosure will sell at a discount. Sellers who are delinquent on their property taxes will sell at a discount. There are also many newbie investors who purchased properties at the top of the market without knowing what they were doing. Some of them want to sell now. Look for opportunities to buy, especially if you can get equity and cash flow and even more so if you can take over their low interest rate mortgage.

There Are Motivated Sellers Selling Houses At A Discount In Today’s Market

There are deals out there. Some of them are even listed on the MLS! I recently purchased a house for just $50,000 that was listed on the MLS for over a year. My student, Todd purchased a rental from auction.com for $107,000, which he has rented for $2,100 a month. My student Dale purchased a house from a motivated seller for $94,000, which is rented for $1,800. My student Kam purchased a rental for $107,000 that is rented for $1,850. These deals are all in the past year. As prices come down you will see more and more deals like this. Learn how to market to motivated sellers with direct mail, pay per click, Facebook Ads and PPL. I teach my students how to do this at my real estate coaching events. When you see a deal that cash flows where you can buy with equity then don’t think too much just buy the property!

Always Buy At A Discount From A Motivated Seller That Needs To Sell

Always buy at a discount. Your seller needs to be motivated to sell. Most sellers want to sell, but they don’t have to sell. You want to focus your marketing efforts on marketing only to those sellers that have to sell. Sellers who are in pre-foreclosure or foreclosure need to sell before the foreclosure auction. Sellers who are delinquent on their property taxes need to sell before the tax sale. Disgruntled landlords with problem tenants or who have vacant and abandoned properties need to sell. Bank owned properties and short sales are highly motivated to sell at a discount. I teach how to find wholesale deals from motivated sellers at huge discounts at the Wholesaling Real Estate Boot Camp.

Learn How To Implement the Buy, Repair, Rent, Refinance Method

Your goal should be to learn how to buy rental properties with no money down. You can do this by learning the buy, repair, rent, and refinance method. This strategy is how I created my first million dollars. I have taught many of my students how to make their first million dollars with this strategy too. Learn it and understand it. If you understand that banks will lend up to 75% of the appraisal value on a property, then your goal should be to find and buy properties where your all in cost (including your purchase price and all repairs) is no more than 75% of the appraisal value. If you can do that, you can buy unlimited houses with no money down. My Home Study Course that every student in my real estate training program gets lists the first 10 houses that I purchased with no money down. Many of my students have done no money down deals. If you want to learn how to implement the Buy, Repair, Rent and Refinance method then  make sure you attend my Buying Rentals and Building Wealth Boot Camp.

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