Is Buying an Investment Property Still Worth It?

It can be but the playbook has changed, and so has the math.

Author

Mike Ugarte
October 24, 2025 • Estimated Reading Time: 3 minutes

Why This Matters Now

Remember when every investor and their cousin was buying up real estate with 3% interest rates and riding the wave of rent growth? Yeah, those days are gone.

Between 7% mortgages, higher insurance premiums, and a slowdown in rent hikes, buying an investment property today takes more than vibes it takes real math and a long term plan.

But don’t count real estate out. Smart investors are still making moves just not the ones you might think.

What You Need to Know

Here are some highlights from the article:

  • The days of easy flips are over. Investors can’t count on rising home prices alone. Now it’s all about cash flow, cost control, and durability.

  • Single family rentals and small multifamily units in affordable markets are still performing well especially in the South and Midwest.

  • You’ve got to run the numbers. DSCR (debt service coverage ratio) and cash-on-cash return (CoC) are the new must knows. If a property doesn’t cover its debt or provide real income, it’s probably not a deal.

  • Costs are higher across the board. Renovations, insurance, and local regulations are eating into margins. You can’t rely on appreciation you’ve got to be operationally sound.

  • Waiting for rates to drop? That might backfire. Lower rates = more buyers = higher prices. If a deal works at today’s rates, experts say it’s better to act than to time the market.

Bottom Line:

This isn’t 2021, but that doesn’t mean there aren’t opportunities here. If you’re eyeing investment property in Pembroke Pines, you need to think like a landlord, not a flipper. That means:

  • Buying below comps

  • Knowing your rental numbers

  • Planning for maintenance, vacancy, and insurance

  • Understanding HOA rules and local rent restrictions

  • Thinking 5–10 years, not 5–10 months

The next best investment deal isn’t going to be obvious. But if you’ve got patience, a good calculator, and a clear exit plan? It might just be around the corner.

Let me know if you want help analyzing a local property. I’ll break it down, no fluff.