In today’s high-cost market, excessive leverage can quickly turn a profitable property into a financial liability. Investors must prioritize conservative underwriting and consistent cash flow over extracting maximum equity.

A “poor man’s 1031 exchange” uses cost segregation and accelerated depreciation on a new purchase to offset taxable gains from a sale in the same year. The approach can defer taxes but is constrained by timing, passive loss rules, and depreciation recapture.

Cotality says fraud risk fell 9.3% year over year in Q1 2026 to 1 in 129 applications, as refinances reached 41% of volume.