Financing has been one of the toughest hurdles for real estate investors in the past two years, with mortgage rates hovering higher than a decade ago. While rates remain elevated, Fannie Mae’s most recent outlook suggests they may settle in the mid-6% range for much of 2025. That’s not the rock-bottom financing of 2020, but it is a slight improvement. For investors, this means creative strategies like adjustable-rate loans, seller financing, or partnering with private lenders may still make sense. Investors should also consider the power of refinancing in the future: locking in a deal that works today with the option to refinance later could provide long-term upside. The key is not waiting for “perfect” rates but structuring deals that cash flow under today’s conditions. In markets with strong rental demand, the financing math can still work well for buy-and-hold strategies.
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