How to Invest Smarter in Real Estate in a High-Interest Market ( 2025 Update)

By Marius C. Olbrych – Desert Premium Properties | Renovate Palm Springs

We’re officially in a new era for real estate investing.

With interest rates holding at 5%–5.5% and affordability squeezed, the days of riding easy appreciation are over. What’s replacing it? A disciplined market that rewards skill, cash flow, and smart execution.

Whether you’re an investor, flipper, homeowner, or buyer looking to time your next move—here’s what you need to know right now in the Coachella Valley and beyond:

In 2021, rising prices masked weak deals. Today? Your numbers have to work on day one.

Smart investors are shifting focus from speculative flips to income-producing properties that offer stability and upside. That means:

✔️ Buying under market
✔️ Renovating with intention
✔️ Structuring terms creatively
✔️ Holding long enough to win through cash flow, not just resale

Short-Term Rentals (STRs) are facing new headwinds:

• Tighter regulations
• Permit caps
• Oversaturated markets

That’s why we’re seeing a pivot to Mid-Term Rentals (MTRs)—furnished 30–90 day rentals ideal for:

• Traveling nurses
• Relocating professionals
• Snowbirds
• Insurance-displaced families

In Palm Springs and the surrounding cities, a properly rehabbed MTR can outperform an STR without the regulatory headache. This is especially true if your property is within close reach of hospitals, downtown corridors, or seasonal venues.

With interest rates high, the buyers who win are those who know how to structure a deal, not just outbid everyone else.

That includes:

• Seller carrybacks
• Subject-to financing
• Wrap mortgages
• Assumable loans
• Terms-based negotiation

At Renovate Palm Springs and Desert Premium Properties, we regularly help clients navigate these options when buying distressed or value-add properties.

For sellers and flippers: The properties that will move in 2025 are well-renovated, turnkey, and priced to cash flow.

At Renovate Palm Springs, we work with investors and homeowners to transform outdated or underperforming properties into highly marketable assets—whether you’re holding, flipping, or preparing to rent.

In this market, a thoughtful renovation adds more than just beauty—it adds function, livability, and value.

Many investors are still holding out, waiting for “the pivot.”

Here’s the reality: Even if rates drop slightly, affordability isn’t coming back fast. The winners will be those who can:

✅ Buy right
✅ Operate efficiently
✅ Adapt their strategy
✅ Create long-term equity

This market rewards skill, not speculation.

Whether you’re turning a fixer into a rental, listing a newly remodeled home, or looking for your next off-market project—we can help you make it a success.

📍 Serving: Palm Springs, Palm Desert, La Quinta, Cathedral City, Rancho Mirage & the greater Coachella Valley

📞 Call/Text: (760) 292-3612
🔗 www.renovatepalmsprings.com
🔗 www.desertpremiumproperties.com

📲 Follow: @RenovatePalmSprings @DesertPremiumProperties