For a long time, rising rents and cheap money covered up a lot of mistakes. That era is over.
Today, every basis point matters. Cash flow matters. Structure matters.
Rates remain elevated. Traditional deal models are thinner. And the margin for error is the smallest it’s been in over a decade.
Assumable Debt : In Plain English
A lot of multifamily properties financed over the last several years are carrying long-term, fixed-rate loans often through Freddie Mac or Fannie Mae at interest rates that don’t exist anymore.
When you buy one of these properties, you can often step into that existing loan instead of placing new, higher-cost debt.
That usually means:
Below-market interest rate
Long remaining loan term
Immediate improvement in cash flow
Stronger DSCR from day one
Lower equity required to close
In today’s rate environment, that advantage is enormous.
Why This Matters More in 2026 Than Ever
Assumable debt doesn’t just save on interest expense. It changes the entire return profile of the investment.
It can:
Improve cash-on-cash returns
Expand your buyer pool on exit
Strengthen downside protection
Reduce refinance risk
Make deals pencil that otherwise wouldn’t
The IRR Effect: Same Property, Different Outcome
The difference isn’t the asset. It’s the capital stack.
Why Most Buyers Miss These Deals
These transactions aren’t easy. They require real relationships and due diligence above and beyond shopping a deal on price per door and cap rate. The best operators in 2026 are shopping on structure.
What Investors Are Asking Right Now
When we review deals today, top operators aren’t starting with the purchase price.
They’re asking:
Is the debt assumable?
What’s the blended interest rate?
How much term is left?
How does this impact cash flow and exit value?
Those questions now matter more than almost anything else.
What We’re Seeing in Michigan
Across Detroit and surrounding Michigan markets, we’re seeing more properties carrying legacy debt that simply can’t be replicated in today’s environment. For buyers, that creates a window of opportunity in 2026.
At OakPointe, our current deal flow includes opportunities with assumable debt. Click here to browse opportunities. > https://www.oakpointeadvisors.com/properties
If you want access to opportunities built around this strategy, reply “DEBT” and let’s talk.
