{"id":357923,"date":"2025-11-07T11:38:20","date_gmt":"2025-11-07T16:38:20","guid":{"rendered":"https:\/\/www.reviews.com\/?p=357923"},"modified":"2025-11-07T11:38:20","modified_gmt":"2025-11-07T16:38:20","slug":"how-to-invest-in-real-estate-during-covid-19","status":"publish","type":"post","link":"https:\/\/www.reviews.com\/insurance\/homeowners\/how-to-invest-in-real-estate-during-covid-19\/","title":{"rendered":"How To Invest in Real Estate During COVID-19"},"content":{"rendered":"\n<p>The U.S. housing market in 2025 is shaped by elevated but easing mortgage rates, tight-but-improving inventory, and moderate price growth, alongside a resilient labor market and a structural shift to hybrid work. Recent readings show the 30-year fixed mortgage rate averaging in the mid-6% to low-7% range per <a href=\"https:\/\/www.freddiemac.com\/pmms\">Freddie Mac PMMS<\/a>, months\u2019 supply hovering roughly in the 3\u20134 range on <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">NAR Existing-Home Sales<\/a>, home prices near record highs with low- to mid-single-digit gains on <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/index-family\/indicators\/sp-corelogic-case-shiller\/\">S&#038;P CoreLogic Case\u2011Shiller<\/a>, unemployment around 4% on the <a href=\"https:\/\/www.bls.gov\/charts\/employment-situation\/civilian-unemployment-rate.htm\">BLS<\/a>, and consumer confidence fluctuating near its long\u2011run average per <a href=\"https:\/\/www.conference-board.org\/topics\/consumer-confidence\">The Conference Board<\/a>. Remote\/hybrid work has stabilized around 28\u201330% of paid workdays, materially above pre\u20112020 norms, influencing where people live and work according to <a href=\"https:\/\/wfhresearch.com\/\">WFH Research<\/a>.<\/p>\n\n\n\n<p>\u201cStaying on top of the real estate market anytime can be challenging,\u201d says Daniel Rodriguez, Director of Operations at <a href=\"https:\/\/hillwealthstrategies.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Hill Wealth Strategies<\/a>. \u201cIn a rate\u2011sensitive cycle, disciplined underwriting, liquidity buffers, and local market data are essential.\u201d<\/p>\n\n\n\n<p>Below we synthesize current research and operator perspectives on the ins and outs of different real estate transactions in today\u2019s market, with live indicators sourced from <a href=\"https:\/\/www.freddiemac.com\/pmms\">Freddie Mac<\/a>, <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">NAR<\/a>, <a href=\"https:\/\/www.spglobal.com\/spdji\/en\/index-family\/indicators\/sp-corelogic-case-shiller\/\">Case\u2011Shiller<\/a>, <a href=\"https:\/\/www.fanniemae.com\/research-and-insights\/forecast\">Fannie Mae ESR<\/a>, and <a href=\"https:\/\/www.corelogic.com\">CoreLogic<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The 2025 U.S. Housing Market<\/h2>\n\n\n\n<p>NAR\u2019s <a href=\"https:\/\/cdn.nar.realtor\">U.S. Economic Outlook<\/a> and monthly <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">Existing-Home Sales<\/a> series show turnover remains below pre\u20112020 norms due to \u201crate\u2011lock\u201d effects and affordability constraints. Mortgage rates in the mid\u20116% to low\u20117% range per <a href=\"https:\/\/www.freddiemac.com\/pmms\">Freddie Mac PMMS<\/a> keep purchasing power tight, while inventory has improved from recent lows but remains lean nationally at roughly 3\u20134 months\u2019 supply on <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">NAR<\/a>. The labor market remains supportive with unemployment around 4% (<a href=\"https:\/\/www.bls.gov\/charts\/employment-situation\/civilian-unemployment-rate.htm\">BLS<\/a>), and consumer confidence is near its long\u2011run average (<a href=\"https:\/\/www.conference-board.org\/topics\/consumer-confidence\">The Conference Board<\/a>), contributing to resilient demand even as affordability is strained.<\/p>\n\n\n\n<p><strong>Housing indicators snapshot (latest themes)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td><br><\/td><td><strong>Latest reading<\/strong><\/td><td><strong>Trend vs. pre\u20112020<\/strong><\/td><td><strong>Key drivers<\/strong><\/td><td><strong>Investor takeaway<\/strong><\/td><\/tr><tr><td><strong>Consumer Confidence Index<\/strong> (level)<\/td><td>Near long\u2011run avg (~100)<\/td><td>Below prior peaks; stable<\/td><td>Inflation cooling, rate sensitivity<\/td><td>Demand resilient; watch affordability<\/td><\/tr><tr><td><strong>Unemployment<\/strong><\/td><td>\u22484%<\/td><td>Comparable to strong periods<\/td><td>Solid labor market<\/td><td>Supports low mortgage delinquencies<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Dr. John A. Kilpatrick, Ph.D., MAI, serves as the Managing Director of <a href=\"https:\/\/www.greenfieldadvisors.com\">Greenfield Advisors<\/a> and the appointed Director of the Washington State Economic Development Finance Authority, an office given to him by Governor Jay Inslee. He is also an Adjunct Professor of Finance at Washington State University and a well-published author. He has followed the post\u2011COVID market closely and shares observations with us.&nbsp;<\/p>\n\n\n\n<p>\u201cThere are some choice buying opportunities right now for investors with cash, or a combination of cash and \u2018staying power,\u2019 who can take a long-term position,\u201d he explains. \u201cIf you leverage properties, you have to consider the likelihood of vacancy, lease-up timing, and interest-rate volatility.\u201d<\/p>\n\n\n\n<p>Investors are seeing this firsthand: single\u2011family construction has been comparatively resilient while a large multifamily delivery wave in many metros has softened rent growth and lifted vacancies, especially in fast\u2011growth Sun Belt markets, per <a href=\"https:\/\/www.census.gov\/construction\/nrc\/\">U.S. Census\/HUD housing construction<\/a> trends and industry leasing data. At the same time, mortgage performance remains strong nationally with delinquencies near historic lows on <a href=\"https:\/\/www.corelogic.com\">CoreLogic<\/a>, reflecting tight underwriting and homeowner equity cushions.<\/p>\n\n\n\n<p>Remote\/hybrid work continues to influence demand and strategy. Roughly 28\u201330% of paid workdays are from home in recent readings (<a href=\"https:\/\/wfhresearch.com\/\">WFH Research<\/a>), which supports suburban\/exurban housing demand and puts ongoing pressure on commodity office. Leading office trackers show elevated national vacancy and office use plateauing around half of pre\u20112020 levels (<a href=\"https:\/\/www.us.jll.com\/en\/trends-and-insights\/research\/united-states-office-market-statistics-trends\">JLL<\/a>; <a href=\"https:\/\/www.kastle.com\/safety-wellness\/getting-america-back-to-work\/\">Kastle<\/a>), creating selective distress but also repositioning opportunities.<\/p>\n\n\n\n<p>At the same time, operators are adapting with digital lead generation, virtual tours, and incentive\u2011driven transactions (e.g., seller credits and builder rate buydowns). Buyers with flexible capital and longer horizons can find value where fundamentals are durable and supply pipelines are manageable.<\/p>\n\n\n\n<p>For family offices and private investors, competition remains most intense in affordable tiers given limited inventory and rate sensitivity on monthly payments. Sound basis and multiple exit options remain critical.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Real Estate Investment Strategies in 2025<\/h2>\n\n\n\n<p>As the owner of one of West Michigan\u2019s largest cash buyers, Lakeshore Home Buyer\u2019s Ryan Dosenberry says that success in a rate\u2011sensitive cycle is all about strategy. \u201cIn my opinion, there is never a bad time to invest in real estate, as long as you buy right.\u201d<\/p>\n\n\n\n<p>He goes on to explain, \u201cBuying right doesn&#8217;t always mean buying a property for pennies on the dollar but also buying in the right area for appreciation and making sure the property is cash flowing if it&#8217;s a rental.\u201d<\/p>\n\n\n\n<p>This year\u2019s best practices align with post\u2011COVID capital rotation toward needs\u2011based housing, single\u2011family rental\/build\u2011to\u2011rent, select healthcare\/medical, and digital infrastructure, while avoiding or deeply discounting commodity, high\u2011CAPEX office, per <a href=\"https:\/\/www.pwc.com\/us\/en\/industries\/asset-wealth-management\/real-estate\/emerging-trends-in-real-estate.html\">PwC\/ULI Emerging Trends 2025<\/a>, <a href=\"https:\/\/www.cbre.com\">CBRE\u2019s 2025 Outlook<\/a>, and <a href=\"https:\/\/www.jll.com\/en\/trends-and-insights\/research\/global-real-estate-perspective\">JLL\u2019s Global Real Estate Perspective<\/a>.<\/p>\n\n\n\n<p><strong>Work your strengths<\/strong>: Start with a niche that fits your skillset and time. Operationally intensive segments (e.g., SFR\/BTR, select-service hospitality, neighborhood retail) reward hands\u2011on management; more passive exposure can come via public REITs or private credit. The post\u2011COVID playbook emphasizes assets with durable demand and manageable capex (<a href=\"https:\/\/www.pwc.com\/us\/en\/industries\/asset-wealth-management\/real-estate\/emerging-trends-in-real-estate.html\">PwC\/ULI<\/a>).<\/p>\n\n\n\n<p><strong>Establish a comfort level<\/strong>: Define your tolerance for rate volatility and refinancing risk. Stress\u2011test DSCR and exits with higher coupons and wider cap rates; align debt (fixed vs. floating with caps) to the business plan using the rate\u2011impact frameworks outlined in <a href=\"https:\/\/fred.stlouisfed.org\/series\/DFF\">FRED Fed funds<\/a> and <a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>.<\/p>\n\n\n\n<p><strong>Be proactive<\/strong>: Monitor listings constantly, target off\u2011market outreach, and leverage builder incentives\/temporary buydowns to bridge monthly-payment gaps (<a href=\"https:\/\/www.freddiemac.com\/pmms\">Freddie Mac<\/a>; <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">NAR<\/a>).<\/p>\n\n\n\n<p><strong>Consider location<\/strong>: Hybrid work (\u224828\u201330% of paid days from home) reduces commute constraints and keeps inter\u2011metro migration elevated\u2014about one in four searchers look to move to a different metro\u2014favoring affordable Sun Belt and lifestyle markets (<a href=\"https:\/\/wfhresearch.com\/\">WFH Research<\/a>; <a href=\"https:\/\/www.redfin.com\/news\/tag\/migration\/\">Redfin migration<\/a>). Starter homes in good school districts remain in high demand for buyers and tenants.<\/p>\n\n\n\n<p><strong>Communicate<\/strong>: Align early with sellers, lenders, and agents on contingencies, timing, and financing structure. Clear expectations can win competitive situations at similar headline prices.<\/p>\n\n\n\n<p><strong>Work social media<\/strong>: Consistent, transparent local\u2011market content\u2014virtual tours, renovation diaries, underwriting assumptions\u2014builds trust and inbound leads even before a listing hits the market.<\/p>\n\n\n\n<p>As a CPA &amp; Tax Strategist for Emparion, Paul Sundin sums it up: \u201cThe proven ways of investing in real estate are a mixture of sourcing, consultation, inspection, valuation, and <a href=\"https:\/\/www.reviews.com\/insurance\/homeowners\/negotiating-for-your-home-during-the-pandemic\/\">negotiation<\/a>.\u201d&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How To Invest in Real Estate in 2025<\/h2>\n\n\n\n<p>Some investors already have playbooks tailored to 2025 conditions: prioritize durable NOI, conservative leverage, and business plans that don\u2019t rely on cap\u2011rate compression. Public indicators point to gradual sales recovery as rates drift lower, with affordability constraints persisting (<a href=\"https:\/\/www.fanniemae.com\/research-and-insights\/forecast\">Fannie Mae ESR<\/a>).<\/p>\n\n\n\n<p>In rental housing, large multifamily deliveries in many metros create opportunities to buy post\u2011lease\u2011up at recalibrated basis or to focus on workforce housing where light value\u2011add (efficiency retrofits, unit refreshes) can support NOI. Single\u2011family rental and build\u2011to\u2011rent communities continue to benefit from space needs under hybrid work and limited for\u2011sale inventory (<a href=\"https:\/\/wfhresearch.com\/\">WFH Research<\/a>; <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">NAR<\/a>).<\/p>\n\n\n\n<p>Dosenberry takes a different approach at Lakeshore Home Buyer. \u201cOne tried and true method of investing in real estate is marketing for motivated sellers. Motivated sellers oftentimes need to sell their house quickly and may accept a cash offer under market value,\u201d he explains. \u201cIf you&#8217;re new to investing, I&#8217;d suggest starting here. Once you have a hot lead and you get it under contract for a great price, the possibilities are endless. You can flip it, wholesale it, rent it out and cash flow it &#8211; the list goes on and on.\u201d<\/p>\n\n\n\n<p>Baseline forecasts anticipate modest improvement in existing\u2011home sales as mortgage rates ease, with home\u2011price growth remaining positive but moderate and new\u2011home construction stabilizing as supply\u2011demand rebalances (<a href=\"https:\/\/www.fanniemae.com\/research-and-insights\/forecast\">Fannie Mae ESR<\/a>; <a href=\"https:\/\/www.census.gov\/construction\/nrc\/\">U.S. Census\/HUD<\/a>).<\/p>\n\n\n\n<p><strong>2025 Outlook Highlights&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Market Projections <\/strong><em>(thousands)<\/em><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td><br><\/td><td><strong>Pre\u20112020<\/strong><\/td><td><strong>Pandemic surge<\/strong><\/td><td><strong>Rate\u2011shock period<\/strong><\/td><td><strong>2025 baseline<\/strong><\/td><\/tr><tr><td><strong>New Single-Family Sales<\/strong><\/td><td>Stable<\/td><td>Elevated<\/td><td>Slower vs. surge<\/td><td>Improving with incentives<\/td><\/tr><tr><td><strong>Housing Starts<\/strong><\/td><td>Steady<\/td><td>Elevated<\/td><td>Normalized<\/td><td>\u22481.3\u20131.6M SAAR (total)<\/td><\/tr><tr><td><strong>Single-Family Units<\/strong><\/td><td>Stable<\/td><td>Strong<\/td><td>Soft patch<\/td><td>Steady to improving<\/td><\/tr><tr><td><strong>Multifamily Units<\/strong><\/td><td>Rising<\/td><td>Surged<\/td><td>Starts cooling<\/td><td>Deliveries high; new starts lower<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>We explore the pros and cons of different real estate properties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Flipping Properties<\/h3>\n\n\n\n<p>Flipping properties\u2014buying, renovating, and selling\u2014requires precise scopes, cost control, and time management, especially with carrying costs influenced by higher borrowing rates. A 100 bps move in mortgage or project financing rates can meaningfully change holding costs and buyer affordability; rule\u2011of\u2011thumb sensitivities show a 1\u2011point mortgage\u2011rate increase reduces purchasing power roughly 8\u201312% for a typical 30\u2011year loan (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>). Underwrite multiple exit paths and conservative comps.<\/p>\n\n\n\n<p>Red Ladder\u2019s Owen Dashner talks about the fast profit. \u201cWhen executing a successful flip, you can make large chunks of money in a short amount of time. I was able to quit my 20-year career because I made more money flipping houses than I did in my 6-figure corporate gig.\u201d<\/p>\n\n\n\n<p>The chance to custom-design a home can also be tempting to many, with Rodriguez adding that it is all your choice. \u201cYou get to reimagine a house and either completely tear it down or do modest renovations or no renovations at all.\u201d<\/p>\n\n\n\n<p>However, permitting backlogs, labor availability, insurance costs, and financing carry can complicate timelines and erode margins if not carefully underwritten. Keep contingencies for schedule slips and materials pricing; model buyer\u2011pool sensitivity to rate changes (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>).<\/p>\n\n\n\n<p>\u201cFlipping deals require rigorous contingency planning,\u201d says Dr. Kilpatrick. \u201cIn a rate\u2011sensitive market, have multiple exit strategies and conservative sales comps.\u201d<\/p>\n\n\n\n<p>Adds Rodriguez, \u201cThere\u2019s no guarantee a new buyer or renter will want the property. These reasons include overall economy, location and \u2018style\u2019 of the (new) property.\u201d<\/p>\n\n\n\n<p>Dashner adds that \u201cflipping houses is not for the risk-averse.&nbsp; It is a difficult skill to master, and there is the potential to lose a lot of money if you don&#8217;t know what you are doing (or even if you do). Unexpected expenses and carrying costs can really throw a wrench into your dreams of huge profits.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Buying REITs<\/h3>\n\n\n\n<p>REITs, or real estate investment trusts, provide liquid, diversified exposure to institutional\u2011grade real estate and reprice quickly with interest\u2011rate moves. Public U.S. equity REIT total returns whipsawed since 2020: about \u22125% (2020), +41% (2021), \u221225% (2022), and +12% (2023) on the FTSE Nareit All Equity REITs Index (<a href=\"https:\/\/www.reit.com\/data-research\/data\/us-reit-industry-equity-market-returns\">Nareit<\/a>). Sector dispersion has been wide\u2014data centers\/industrial outperformed while office lagged\u2014consistent with post\u2011COVID fundamentals (<a href=\"https:\/\/www.reit.com\/data-research\/research\/reit-t-tracker\">Nareit T\u2011Tracker<\/a>).<\/p>\n\n\n\n<p>Rodriguez calls an REIT a \u201clow-risk real estate maneuver\u201d because there is more of a hands-off approach for the investor. \u201cYou are not required to put down large sums of cash,\u201d he says but adds that investors need to feel secure with their brokers. &#8220;You need to be able to feel comfortable with your broker and trust they will invest in real estate that will help you achieve your short- and long-term goals.\u201d<\/p>\n\n\n\n<p>\u201cBehaving like stocks, REITs are easy to buy and sell, much more so than their underlying assets,\u201d explains Dashner. \u201cREITs are professionally managed. If you want a hands-off investment that pays dividends, give REITs a close look.\u201d<\/p>\n\n\n\n<p>Public REITs also tend to lead private\u2011market price discovery by several quarters; listed\u2011to\u2011private valuation gaps can create take\u2011private or JV opportunities when capital costs allow (<a href=\"https:\/\/www.greenstreet.com\/insights\/CPPI\">Green Street CPPI<\/a>).<\/p>\n\n\n\n<p>However, Monoshia Dixon avoids REITs at Anassa. \u201cI personally do not recommend this to anyone,\u201d she says. \u201cThis is because you do not know where your money is going or if you are going to make any money from any REITs.\u201d<\/p>\n\n\n\n<p>At LP Property Group, Samuel urges caution. \u201cIf you don\u2019t do enough research upfront, you could buy REITs that have poor financials, slash their dividends, and you can lose your principal investments.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Buying Rental Properties&nbsp;<\/h3>\n\n\n\n<p>Dixon much prefers rental properties. \u201cBuying rentals is always the best way to make passive income,\u201d she says. \u201cThis way can potentially help a person leave their current 9-5, because whether you have 2 units or 100 units. As long as you keep the building up to date\/code and a great property management team, you will have a great asset.\u201d<\/p>\n\n\n\n<p>Rodriguez likes rental properties because they can be managed in a flexible, technology\u2011enabled way. \u201cSimply invest in a rental property and have someone else manage the day-to-day operations of it,\u201d he says simply. \u201cYou can remain in contact with this manager on a daily basis via video conference.\u201d<\/p>\n\n\n\n<p>Today\u2019s rental market is bifurcated: elevated multifamily deliveries in many metros have softened rent growth and raised vacancies, while single\u2011family rentals benefit from hybrid work preferences for space and limited for\u2011sale inventory (<a href=\"https:\/\/wfhresearch.com\/\">WFH Research<\/a>; <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">NAR<\/a>). Mortgage performance remains strong nationally with delinquencies near historic lows on <a href=\"https:\/\/www.corelogic.com\">CoreLogic<\/a>, supporting credit availability for well\u2011underwritten deals.<\/p>\n\n\n\n<p>Says LP Property Group\u2019s Samuel succinctly, \u201cIntelligently-purchased rental properties can provide stable cash flows over the long term while the property appreciates in value.\u201d<\/p>\n\n\n\n<p>\u201cAfter all, says Dashner, \u201cSomeone is literally paying for you to own a house. Name one other asset class where this happens!\u201d<\/p>\n\n\n\n<p>\u201cYou are, typically, the landowner and maintenance person, so middle-of-the-night roof leaks or frozen pipes are a real possibility,\u201d warns Rodriguez. \u201cWhile your sleep may be temporarily disturbed, the on-going upkeep and maintenance may provide more inconvenience than what it\u2019s worth.\u201d<\/p>\n\n\n\n<p>Samuel sees it happen all the time. \u201cIf properties are not intelligently selected, they can lose value over time and cash flow can be negative.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Crowdfunding Real Estate Investments<\/h3>\n\n\n\n<p>\u201cCrowdfunded real estate deals let you participate with other investors in deals that you normally would not be able to access on your own, which means less money from you in each deal,\u201d says Dashner. \u201cYou won&#8217;t be the one swinging the hammer in these deals. They are professionally vetted and managed, you just sit back and enjoy the profits.\u201d<\/p>\n\n\n\n<p>Regulatory updates since 2021 expanded access and structures: the SEC raised caps to $5M for Reg CF and $75M for Reg A Tier 2, permitted testing\u2011the\u2011waters, and allowed SPVs for Reg CF to simplify cap tables (<a href=\"https:\/\/www.federalregister.gov\/documents\/2021\/01\/14\/2020-24749\/facilitating-capital-formation-and-expanding-investment-opportunities-by-improving-access-to-capital\">SEC final rule<\/a>). In a higher\u2011rate world, many platforms emphasize shorter\u2011duration debt, senior loans, and preferred equity with tighter covenants (<a href=\"https:\/\/www2.deloitte.com\/us\/en\/insights\/industry\/financial-services\/commercial-real-estate-outlook.html\">Deloitte CRE Outlook<\/a>). FINRA highlights supervisory priorities for portals around communications, diligence, and cybersecurity (<a href=\"https:\/\/www.finra.org\">FINRA 2025 Oversight Report<\/a>).<\/p>\n\n\n\n<p>Says Samuel, \u201cIt\u2019s passive, and there is not a lot of work involved. You essentially give your money to someone else, and they invest it for you. It\u2019s a way to get exposure to real estate investing without doing much work on your own.\u201d<\/p>\n\n\n\n<p>Illiquidity remains a core risk\u2014assume multi\u2011year holds and underwrite sponsor quality, fee stacks, and downside scenarios carefully. Verify the intermediary is a registered funding portal or broker\u2011dealer and that required filings (Form C, offering circular, Form D) are in place (<a href=\"https:\/\/www.finra.org\">FINRA Investor Insights<\/a>).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is Now a Good Time To Invest in Real Estate?<\/h2>\n\n\n\n<p>When it\u2019s all said and done, investors have a decision to make &#8211; to buy or not to buy. Our experts answer that question.<\/p>\n\n\n\n<p>\u201cThere is no such thing as a bad time to invest in real estate,\u201d says Dixon.&nbsp;<\/p>\n\n\n\n<p>Samuel agrees. \u201cAt every time and in every real estate market, profitable deals can be found. With mortgage rates elevated versus early\u2011pandemic lows but easing from prior peaks, opportunities exist\u2014especially where distress or recapitalizations reset basis.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Key 2025 considerations&nbsp;<\/h3>\n\n\n\n<p>Affordability and rate volatility shape outcomes: mortgage rates sit in the mid\u20116% to low\u20117% range (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>), months\u2019 supply is roughly 3\u20134 (<a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/existing-home-sales\">NAR<\/a>), and home prices continue to rise modestly (<a href=\"https:\/\/www.spglobal.com\/spdji\/en\/index-family\/indicators\/sp-corelogic-case-shiller\/\">Case\u2011Shiller<\/a>). Hybrid work remains entrenched (~28\u201330% of paid days from home), shifting demand toward larger spaces and suburban\/exurban locations (<a href=\"https:\/\/wfhresearch.com\/\">WFH Research<\/a>). Mortgage delinquencies remain near historic lows nationally (<a href=\"https:\/\/www.corelogic.com\">CoreLogic<\/a>).<\/p>\n\n\n\n<p>Dashner agrees. \u201cBecome a great deal finder, and you will be successful in any market.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Navigate Elevated Mortgage Rates<\/h3>\n\n\n\n<p>Current mortgage rates have averaged in the mid\u20116% to low\u20117% range over the past year (<a href=\"https:\/\/www.freddiemac.com\/pmms\">Freddie Mac PMMS<\/a>). Use buydowns and seller credits to bridge affordability; stress\u2011test payments and refinance scenarios. As a rule of thumb, a 1 percentage point rate increase raises a typical 30\u2011year fixed payment by roughly 12% for the same principal\u2014or reduces purchasing power by roughly 8\u201312% (<a href=\"https:\/\/www.freddiemac.com\/pmms\">PMMS<\/a>). Align debt structure and hedges with your hold period, and maintain liquidity for contingencies.<\/p>\n\n\n\n<p>\u201cThe most common strategies, flipping, buying and holding, and developing all have their time and place,\u201d he adds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Getting Home Insurance for Your Properties<\/h2>\n\n\n\n<p>Regardless of what kind of property you buy, it\u2019s critical that you protect your investment with the right <a href=\"https:\/\/www.reviews.com\/insurance\/homeowners\/best\/\">homeowners insurance<\/a>. Small but effective additions like <a href=\"https:\/\/www.reviews.com\/home\/security-systems\/online-neighborhood-safety\/\">home security systems<\/a> can boost neighborhood safety and award you with <a href=\"https:\/\/www.reviews.com\/insurance\/homeowners\/best-cheap\/\">cheap homeowners insurance<\/a>.<\/p>\n\n\n\n<p>\u201cI tell people it\u2019s always a good idea to purchase home insurance for their property,\u201d says Rodriguez. \u201cLandlord insurance will generally cover the property and surrounding structures\u2014such as fences, sheds, carports and external storage units on-site. This insurance protects against forces of man and nature &#8211; for example, a windstorm or a fried turkey fire. There are different rules and policies for landowners and homeowners, so I suggest they consult with their current insurance carrier for specific coverage needs.\u201d<\/p>\n\n\n\n<p>For 2025, investors should expect pricing and underwriting that vary sharply by geography and risk quality. Elevated counts of billion\u2011dollar disasters have pressured property insurance markets (<a href=\"https:\/\/www.ncei.noaa.gov\/access\/billions\/\">NOAA<\/a>), pushing some risks into state residual markets like FAIR Plans\/Citizens (<a href=\"https:\/\/content.naic.org\">NAIC<\/a>). California\u2019s 2024 Sustainable Insurance Strategy aims to stabilize capacity by modernizing ratemaking (e.g., catastrophe models, reinsurance costs) paired with commitments to write in higher\u2011risk zones (<a href=\"https:\/\/insurance.ca.gov\">CA DOI<\/a>). Non\u2011weather water and fire severity remain focal claim drivers, prompting carriers to scrutinize roofs, plumbing\/electrical, and vacancy status (<a href=\"https:\/\/risk.lexisnexis.com\">LexisNexis<\/a>; <a href=\"https:\/\/www.iii.org\/fact-statistic\/facts-statistics-homeowners-insurance\">III<\/a>).<\/p>\n\n\n\n<p>Dixon errs on the side of caution at Anassa. \u201cYou want to make sure you are protected first, then your asset. This is because an intelligent real estate investor who owns multifamily housing will make sure their tenets will have renter insurance to protect themselves. With such a litigious society we live in, you want to make sure you are protected at all times,\u201d she warns. \u201cFor investment properties, always do your research for insurance rates, because you want the max coverage.\u201d<\/p>\n\n\n\n<p>\u201cInsurance for single-family rental properties works similarly to normal homeowner insurance by protecting the structure and fixtures of the property,\u201d explains Dashner, \u201cbut it can also include other benefits that protect landlords from unpaid rents and damage to the property by tenants or their guests.&nbsp; Contacting an experienced insurance broker will give you more options on the type of policy you need for your property.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Bottom Line<\/h2>\n\n\n\n<p>\u201cIt&#8217;s very hard to predict where real estate markets will head in the coming year, yet with hope of gradually easing mortgage rates, improving inventory from low levels, and a resilient labor market, there are many reasons to be cautiously optimistic,\u201d says Ruban Selvanayagam, co-founder of the homebuying and selling company Property Solvers.<\/p>\n\n\n\n<p>Operational themes matter: hybrid work remains entrenched (~28\u201330% of paid days from home), which continues to reshape housing preferences and commercial space needs (<a href=\"https:\/\/wfhresearch.com\/\">WFH Research<\/a>; <a href=\"https:\/\/www.us.jll.com\/en\/trends-and-insights\/research\/united-states-office-market-statistics-trends\">JLL<\/a>). Forecasters expect a gradual recovery in sales activity as rates drift lower, with home\u2011price growth staying positive but moderate and mortgage delinquencies low (<a href=\"https:\/\/www.fanniemae.com\/research-and-insights\/forecast\">Fannie Mae ESR<\/a>; <a href=\"https:\/\/www.corelogic.com\">CoreLogic<\/a>).<\/p>\n\n\n\n<p>It\u2019s on par with NAR\u2019s market readings, and at Red Ladder, Dashner also expects selective opportunities as bid\u2011ask spreads narrow and motivated sellers emerge.&nbsp;<\/p>\n\n\n\n<p>\u201cI will always be a believer in residential real estate because people will always need a place to live,\u201d he says simply.&nbsp;<\/p>\n\n\n\n<p>It\u2019s a reassuring thought to investors the world over.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. housing market in 2025 is shaped by elevated but easing mortgage rates, tight-but-improving inventory, and moderate price growth, alongside a resilient labor market and a structural shift to hybrid work. Recent readings show the 30-year fixed mortgage rate averaging in the mid-6% to low-7% range per Freddie Mac PMMS, months\u2019 supply hovering roughly [&hellip;]<\/p>\n","protected":false},"author":345,"featured_media":348026,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1268,1263],"tags":[],"post_author":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How To Invest in Real Estate During COVID-19 - Reviews.com<\/title>\n<meta name=\"description\" content=\"Parts of the real estate market have been hit by the coronavirus, but experts say there are plenty of opportunities if you know where to look.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.reviews.com\/insurance\/homeowners\/how-to-invest-in-real-estate-during-covid-19\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How To Invest in Real Estate During COVID-19 - 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