Volume 11 · September 1st, 2026
Something is shifting in the resale market, and it’s opening a real window for investors — not homeowners, investors. Flipped properties are sitting longer, sellers are cutting prices at a record pace, and a growing share of rehabbers are quietly deciding to keep and rent instead of sell at a discount.
If you’re on either side of that trade — the one holding a rehab that isn’t moving, or the one hunting for a deal — this issue is built for you.
Market Update — September 2026: The Resale Market Just Handed Buyers Leverage
A fresh Movoto analysis of active listings — pulled July 14 and published in mid-August — found 35.4% of homes across 17 major metros are now priced below their original list price. In Fort Lauderdale, West Palm Beach, and Tacoma, that share tops 43% — more than two of every five homes on the market have already come down from where they started. Days on market are stretching, holding costs are climbing, and the pressure is landing squarely on anyone who bought and renovated a property expecting a quick resale.
The math behind those cuts matters for buyers. At Freddie Mac’s average 30-year rate of 6.69% for the week of August 6, a $150,000 price cut — roughly the median markdown in the priciest metros — lowers the monthly principal and interest payment by about $774 with 20% down. That’s real, structural negotiating leverage, not just a headline.
That pressure is changing investor behavior in a measurable way. The Q1 2026 JBREC + Kiavi Fix and Flip Survey found 47% of active flippers now plan to keep more homes as rentals in 2026 — the highest share in the survey’s four-year history. Notably, this isn’t a retreat: the same research group’s Fix and Flip Market Index actually rose to 63 (a reading above 50 signals expansion), up 5 points year-over-year. Flippers are more confident about activity overall — they’re just building in a rental exit as optionality when a resale doesn’t hit target price. Add in foreclosure starts up 20% year-over-year and bank repossessions up 45%, per Kiavi’s Q1 2026 data, and there’s more discounted inventory entering the market on top of the price cuts already underway.
- 35.4% — Active listings priced below original ask, 17 major metros (Movoto, pulled July 14, 2026)
- 47% — Flippers planning to keep more homes as rentals, a 4-yr high (JBREC + Kiavi, Q1 ’26)
- +45% — YoY growth in bank repossessions, foreclosure pipeline (Kiavi Investor Pulse, Q1 ’26)
This Isn’t Every Market
Price cuts are widespread but far from uniform. A listing in Fort Lauderdale is more than twice as likely to have been cut as one in Lake County–Kenosha, and low-priced entry-level homes are seeing cuts far more often than the high end in most metros — though when higher-priced listings do get cut, the dollar markdown tends to be larger. The leverage is real, but which side of it you’re on depends entirely on the specific market, price tier, and property. Know your comps before you act on a national headline.
IPL Takeaway
Whichever side of this you’re on, the tool is the same: DSCR financing. If you’re holding a rehab that didn’t sell for what you wanted, a DSCR refinance lets you exit the expensive short-term capital and hold the property as a rental instead — no W-2s, no tax returns, qualifying on the property’s own cash flow. If you’re hunting for your next deal, a DSCR purchase loan lets you move fast on a discounted, price-reduced listing without your personal income or existing debt getting in the way. Two different situations, one program built for both.
This Month’s Play: Two Sides of the Same Opportunity
If you’re the one holding the rehab: a flip that’s sat 60, 90, or 120+ days is bleeding money every month it doesn’t sell — interest, taxes, insurance, utilities. Cutting the price further isn’t always the right move. Refinancing out of your hard money or bridge loan and into a long-term DSCR loan converts that stalled asset into a cash-flowing rental, on your timeline, with a payment sized to the property’s rent — not your personal financials.
If you’re hunting for the next deal: every price cut on the market right now is negotiating leverage in your favor. Longer days on market means more room to negotiate on price, credits, and terms — sellers know it, and they’re adjusting expectations accordingly. A DSCR purchase loan lets you qualify and close based on the property’s rental income, so you can move on a discounted listing fast, without waiting on tax returns or W-2 documentation to catch up.
What The Data Shows: 47% — of active flippers now plan to keep more homes as rentals in 2026, the highest share in four years of survey data. If you’re thinking the same thing, you’re not early — you’re on trend.
Two Recent Closings — Two Different Playbooks
“We finished the rehab in April and listed at what we thought was a fair number. Ninety days and two price cuts later, we were still $18K under what we needed to make the flip work. Instead of cutting again, IPL refinanced us out of the hard money loan and into a DSCR loan sized to the rent, not our income. We’re now cash-flowing about $340 a month on a property that would have been a loss if we’d forced the sale.”
— Marcus T. · Fix-and-flip investor, Birmingham, AL
“I’d been watching a listing that sat for almost four months and had two price drops already. The seller was clearly motivated, but I needed to move fast before someone else swooped in. IPL closed my DSCR purchase loan in under three weeks, no tax returns, no income verification — just the numbers on the property. I picked it up 11% under original list and it cash-flows from day one.”
— Renee K. · Buy-and-hold investor, 4 doors in Ohio & Kentucky
Featured Loan Product: DSCR Financing — For Whichever Side of the Deal You’re On
One program, two use cases. Whether you’re exiting a stalled flip or chasing a discounted acquisition, DSCR loans qualify on the property’s rental income — not your personal tax returns, W-2s, or DTI.
DSCR Purchase — Program Highlights: Move Fast On Discounted Inventory
Built for investors acting on price-reduced and extended-days-on-market listings. Qualify on the property’s rent, not your income documentation.
- Max LTV: Up to 80%
- FICO Minimum: 660+ (780+ for best pricing)
- DSCR Floor: Down to .75 — no-ratio available
- Property Types: SFR, 2–4 unit, condo, STR
DSCR Refinance (Fix-to-Rent) — Program Highlights: Exit The Flip. Keep The Asset.
Built for flippers pivoting a completed rehab into a long-term hold — refinance out of expensive short-term capital and into a rental-sized payment.
- Max LTV — Rate/Term: Up to 80%
- Max LTV — Cash-Out: Up to 75%
- FICO Minimum: 660+ (780+ for best pricing)
- Loan Amounts: $100K – $4.5M
Rates on both programs vary by DSCR ratio, LTV, credit profile, and property type — talk to your loan advisor for a scenario-specific quote. If your situation calls for tapping equity without disturbing an existing low-rate first mortgage instead, our HELOC / 2nd position program from last month’s issue is still available and still closing fast.
Holding a Slow-Moving Flip? Chasing a Discounted Listing?
Either way, the math is worth running before you make your next move. We’ll price out your specific scenario, purchase or refinance, and show you exactly where the numbers land. No commitment, no pressure — just real terms.
Contact us or reach your loan advisor directly.
Stay curious. Stay informed. Stay funded.
The Investor Property Loan Team · Your Mortgage Lab
(800) 440-8350 · InvestorPropertyLoan.com