This year's IMN Single Family Rental (SFR) Conference was held in sunny Scottsdale, AZ. As always, it was a meeting of the minds, bringing together real estate investors (REIs), brokers, and private lenders to discuss how single-family rentals (SFRs) and build-to-rent (BTR) properties may provide new opportunities in 2025.
A highlight of the conference was the panel discussions with Kiavi's own Stephanie Casper, Chief Revenue Officer, and Charles Goodwin, Vice President of Sales. Their contributions, alongside those of other seasoned panelists, brought fresh perspectives on topics such as navigating affordability challenges, creative inventory sourcing, and leveraging unique financing solutions to drive growth.
Two words routinely uttered at this year's IMN Single Family Rental Conference were "cautious optimism." The 2024 housing market experienced significant challenges: rising interest rates, affordability challenges, and tight inventory across many regions. Real estate investors faced a year where patience and flexibility were vital to success.
Industry leaders in attendance shared an anticipation for similar challenges in 2025 – but remained optimistic that there may be some pleasant surprises ahead. Interest rates could gradually decrease, which could provide a potential increase in inventory. However, the affordability gap between renting and owning could remain one of the main reasons behind increased rental demand. Real estate investors who can pinpoint strong rental markets and execute their flips with renters in mind may see these challenges as opportunities.
Even with elevated interest rates, the single-family rental market could continue to grow in 2025. Renting is still more affordable than owning a home for many, which might keep rental property demand strong. This affordability gap, combined with a consistent undersupply of housing, creates a unique opportunity for real estate investors to expand their rental portfolios. By switching gears from fix-and-flip projects to focusing on entry-level homes as affordable rental properties, real estate investors could find new ways to address market needs while achieving sustainable growth.
A financing tool that was often mentioned at this year's conference to support investors’ growth in the rental sector is the Debt Service Coverage Ratio (DSCR) loan. DSCR loans are designed to evaluate an investment property's cash flow rather than relying on traditional income verification like W2s. By utilizing a DSCR loan, real estate investors can secure financing based on a property's income-generating potential. DSCR loans could also be a powerful option for brokers to help their investor clients scale their real estate portfolios or enter new markets.
If the affordability gap persists, DSCR loans could offer real estate investors an opportunity to meet the continued demand for rental housing, especially in markets where buying remains out of reach for many potential homeowners.
During the highly attended panel "What A Buyer Needs to Know For 2025," industry leaders explored the best ways to approach acquisitions in the coming year. The conversation universally emphasized the importance of understanding local market dynamics, especially in the Midwest and Southeast, where single-family and build-to-rent opportunities continue to grow.
Stephanie Casper, Chief Revenue Officer at Kiavi, highlighted the importance of creativity and persistence in finding deals, "The opportunity is there because of the pent-up demand for houses that aren't on the market. Knowing your market and getting creative—like driving around neighborhoods looking for renovation signals—can help uncover these opportunities."
Panelists agreed that effectively managing renovation budgets and relying on data-driven decision-making are critical to avoiding financial missteps. They also unanimously noted that Real Estate-Owned (REO) properties could offer hidden opportunities for real estate investors who are well-prepared and willing to put in the work next year.
For investors, financing has remained a top priority to scale their businesses, and DSCR loans are proving to be a much-needed resource. At the IMN SFR conference, the panel "What Are The Rates & Points Out There?" provided valuable insights into DSCR lending and what could lie ahead.
Charles Goodwin, Vice President of Sales at Kiavi, shared his thoughts on the rate environment affecting real estate investors in 2025, “DSCR rates hinge on many factors - economic, political, and more - and those are constantly in flux. If the U.S. economy and job market remain strong, we can expect rates to move downward very slowly next year.”
The discussion also touched on short-term rental strategies and balancing risk and reward. Across the stage, panelists emphasized the need for sound financial planning and the ability to adapt quickly to changing conditions.
What was the most significant takeaway from the IMN SFR West Conference? There are plenty of opportunities for real estate investors who remain patient, adaptable, and, most importantly, proactive. While the real estate market may not rebound overnight, strategies and tools are available to help investors overcome frequent challenges.
One such tool is Kiavi’s DSCR loan, a flexible financing solution designed to help REIs scale their rental portfolios and meet the growing demand for rental housing. Using solutions like this, creative acquisition strategies, and data-driven decision-making, real estate investors can turn today’s market challenges into long-term opportunities.