Multifamily pros react to interest cuts

Hey there,

I hope you had a great weekend!

Every other Monday, I send out a roundup of the most relevant multifamily news and insights, curated from the perspective of both an operator and a passive investor.

Here's what stood out to me this week

The Federal Reserve's latest 25 basis point rate cut—bringing rates to 3.50%-3.75%—marks the third consecutive reduction this year, but multifamily industry pros say the real impact will depend on what comes next. While the cut itself was widely expected and offers some relief on borrowing costs for development and refinancing, experts note that long-term rates remain stubbornly high and lending spreads haven't narrowed enough to dramatically change the game.

The good news is that lower rates could boost investor confidence and potentially increase transaction volume as property values rise with falling cap rates. However, with the Fed signaling only one additional cut in 2026, industry insiders agree that sustained stability in long-term rates—not just these modest short-term adjustments—is what's really needed to unlock capital and get deals moving again.

While many buyers are aware that they should avoid embodying these habits, many still do so. Suppose you're a buyer who makes a serious and concerted effort to avoid doing these things. In that case, you'll develop better relationships with brokers, especially as the market slows down and brokers prioritize working with the most reliable buyers over unknown parties who may offer higher prices.

In this solo episode, I share five real estate “hills” I’m willing to die on — opinions I’ve formed after years of investing that run directly against a lot of the conventional wisdom floating around our industry. Some of these takes might feel uncomfortable, especially if you’re early in your investing journey, but they come from very real (and sometimes expensive) lessons learned along the way. My goal with this episode is to challenge assumptions that can quietly hold investors back or cause avoidable mistakes.

I walk through why bringing in professional property management sooner than you think can actually save you money, why passive investing isn’t always the right move for newer or non-accredited investors, and why a lot of investing advice coming from residential agents should be taken with a big grain of salt. I also explain why keeping your first deal intentionally simple matters more than maximizing returns, and why partnering too early can create far more friction than freedom. Whether you agree with all of these takes or not, this episode will help you think more critically about how you’re building your foundation as an investor.

You can also listen to this episode on Spotify.

Nine months ago, we closed on this 8-unit in Derry, NH. Solid location, under-market rents, and significant deferred maintenance. We closed this deal off-market, owned by an elderly seller who was finally looking to retire. We put together a contingency-free contract so he felt comfortable going under contract and notifying his tenants, which had been a sticking point for him.

At closing, the average rent across the building was ~$1,050/unit, totaling a rent roll of about $8,435/mo. Interiors were dated, layouts were rough, and a few units needed full rehab.

Our plan was straightforward: turn units as they became vacant, install new LVP flooring, update paint and trim, redo kitchens and baths, and tackle exterior and common-area work so the property matched the strength of the location.

Fast forward nine months: the average rent is now ~$1,715/unit, and the total rent roll is about $13,725/mo. We just executed a refinance that allowed us to pull all of the original invested capital out of the deal.

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