🏡 Is Buying an Investment Property Worth It Right Now?

Andrew Georgitsis
6 days ago
3 min read

Here’s Where Smart Investors Are Getting Ahead — and Why Many Are Turning to Fractional Ownership

By Andrew Georgitsis — SoCal Realty & Investments | DRE #02266192Published October 22, 2025

The Pandemic Boom That Made Everyone an Investor

During the COVID-19 boom, buying investment property almost seemed like a no-brainer.Low mortgage rates and soaring home prices created a perfect storm where nearly any deal could turn a profit.

“During the pandemic, record-low interest rates and rapid capital appreciation created a highly forgiving environment for investors,”explains real-estate investor Duncan Kreeger.“Leverage was cheap, price growth was consistent, and even marginal assets performed well.”

Homes were selling fast, fix-and-flips turned quick profits, and rental demand seemed endless. For a while, it felt like real estate could do no wrong.

The New Reality: Higher Rates, Thinner Margins

Fast-forward to today, and the landscape has changed dramatically.

With mortgage rates stuck above 6%, renovation costs at record highs, and rent growth starting to cool, it’s getting harder for investors to make the math work.

What used to be a “sure bet” now feels more like a gamble. The easy-money era is over, and investors can no longer rely on rising home values alone to deliver returns.

“The fundamentals have changed,” Kreeger continues. “Cash flow, net operating income, and the ability to manage costs now sit at the center of every sound investment decision.”

Success in 2025 depends on smart strategy, efficient management, and a long-term mindset.

Where Some Investors Are Still Winning

Despite tighter margins, opportunity still exists.Markets in the Midwest and South continue to draw attention for their affordability and steady demand.But here in California — with higher entry prices and more expensive financing — investors need creative ways to stay profitable.

This shift is pushing more experienced investors toward alternative models that reduce costs, spread risk, and deliver reliable returns.

The Smart Pivot: Fractional Ownership

One of the fastest-growing trends is Fractional Ownership — a modern way to invest in real estate without taking on an entire mortgage or property yourself.

In a fractional model, multiple investors collectively own a property and share its income, expenses, and appreciation.Think of it as owning a “slice” of a high-performing asset instead of carrying the full weight of ownership alone.

Here’s why it’s working so well:

✅ No 7% Mortgage Drag — Most fractional models operate without traditional consumer-rate loans.

✅ No 1.75% PMI — No private mortgage insurance since ownership is shared, not individually financed.

✅ Shared Expenses — Maintenance, insurance, and renovation costs are divided among investors.

✅ True Passive Income — You earn monthly cash flow and future appreciation.

Instead of sending profits to a bank, you and other investors share the returns — often generating 12% total yield over 5–7 years through combined income and appreciation.

Why It Beats Traditional Investing in 2025

In a high-interest-rate environment, traditional real-estate investing can be tough.Borrowing costs eat into profits, and volatility adds risk.Fractional ownership flips that equation by removing the burden of debt and letting investors focus on returns, not repayments.

You still own tangible real estate — but with lower risk, better liquidity, and stronger projected performance.

The Bottom Line

So, is buying an investment property worth it right now?

✅ Yes — if you invest smarter.

The real winners in today’s market aren’t those chasing leverage; they’re the ones leveraging innovation.Fractional ownership gives investors access to high-performing real estate without the 7% loan, PMI, or property-management stress — and positions them for 12%+ returns as the market stabilizes over the next few years.

Ready to Learn More?

At SoCal Realty & Investments, we help clients explore traditional and fractional real-estate opportunities throughout Southern California — from Temecula to Carlsbad, Murrieta to Oceanside.

💼 Visit: www.SoCalRealtyAndInvestments.com 📞 Call/Text: 866-322-5487 📧 Email: info@socalrealtyandinvestments.com