ditions don't automatically make rental properties a bad investment. They do mean that investors need to be more careful about what they pay and how they calculate their potential returns.
2. Smaller Investors Are Playing a Bigger Role
One of the most interesting findings in Realtor.com's report is the growing share of purchases made by smaller investors.
Investors purchased approximately 10.7% of homes nationally in the first half of 2026, down from 11% in the first half of 2025. In total, investor purchases fell about 7% year over year.
However, smaller investors accounted for 66.2% of investor purchases during the first half of 2026—the highest share in at least 15 years.
Meanwhile, large and mega-investors pulled back, with those groups collectively selling more homes than they purchased during the period.
What does this mean? The investment market isn't disappearing, but the strategy is changing. Smaller investors are continuing to participate while larger operators reassess their portfolios and the economics of owning rental properties.
For someone considering a first rental property, this reinforces the importance of having a clear plan rather than assuming that real estate will automatically appreciate or produce a reliable profit.
3. Why Purchase Price Matters More Than Ever
When evaluating a rental property, the purchase price has a major impact on the entire investment.
Realtor.com's report found that small investors purchased homes at a national median price of approximately $295,000 in the first half of 2026. That was 22.4% below the $380,000 median for non-investor purchases.
A lower purchase price can mean a smaller loan, less interest expense, and a better chance of generating positive cash flow—provided the property can still attract reliable tenants and its other expenses are manageable.
For investors looking in Concord, Kannapolis, Harrisburg, or surrounding communities, this means evaluating properties based on their potential performance rather than choosing a home simply because it looks appealing or is in a desirable neighborhood.
Before making an offer, consider:
What rent can the property realistically command?
How does the purchase price compare with similar properties?
Are major repairs or updates needed?
What will taxes, insurance, and ongoing maintenance cost?
Is there enough rental demand to support the investment?
A property that looks like a bargain may require significant renovations or ongoing expenses. A higher-priced property may have stronger rental demand, but the numbers still need to work.
The goal is to understand the full financial picture before committing.
4. Cash Flow Is About More Than Monthly Rent
It's easy to look at a property's estimated rent and compare it with the mortgage payment. Unfortunately, that calculation leaves out several expenses that can determine whether the investment is profitable.
A more complete rental property budget should account for:
Mortgage principal and interest
Property taxes
Landlord insurance
Routine maintenance and unexpected repairs
Vacancy periods between tenants
Property management fees, if applicable
HOA dues, where applicable
Larger future expenses, such as a roof or HVAC replacement
For example, imagine a rental property brings in $2,000 per month.
That $2,000 is not automatically profit. If the mortgage, taxes, insurance, maintenance reserves, and other expenses total $1,800 per month, the property has only $200 remaining before accounting for any additional costs not included in the estimate.
If the property sits vacant for a month or needs a significant repair, that remaining income can disappear quickly.
This is why investors should build conservative estimates and leave room for unexpected expenses. If an investment only works when the property is occupied every month and nothing needs repair, it may be carrying more risk than the numbers initially suggest.
5. Should You Pay Cash or Finance an Investment Property?
Realtor.com's report found that approximately 55.5% of investor purchases in the first half of 2026 were made in cash, compared with 30% of purchases across the overall market.
Paying cash can make an investment property more attractive financially because it eliminates the monthly mortgage payment. It may also help a buyer compete in certain transactions.
However, paying cash isn't the only way to invest in real estate, and it doesn't guarantee a good investment.
Cash buyers still need to account for property taxes, insurance, maintenance, vacancies, and other expenses. They also need to consider the opportunity cost of tying a large amount of money up in one property rather than keeping some of it available for other investments or emergencies.
Financing can allow an investor to purchase a property without using all their available capital, but investment-property loans typically come with higher interest rates and stricter requirements than loans for primary residences.
The right approach depends on your financial situation, available capital, risk tolerance, and long-term goals.
Before purchasing, compare financing options and calculate how different down payments and interest rates would affect your potential cash flow.
6. What Should Local Investors Consider in the Concord and Charlotte Area?
The greater Charlotte region offers a variety of housing options, from established neighborhoods and townhomes to newer communities and single-family rentals. But there isn't one investment strategy that works for every property or location.
If you're considering buying a rental in Concord, Kannapolis, Harrisburg, or nearby communities, start by narrowing down the type of investment you want to pursue.
Single-family rentals
A single-family home may appeal to tenants looking for more space, a yard, or a particular school assignment area. Investors should compare likely rent with the purchase price and account for maintenance responsibilities associated with the property.
Townhomes and condos
These properties may offer a different maintenance profile, but HOA dues, rental restrictions, special assessments, and community rules can affect the investment. Review the governing documents and confirm rental eligibility before purchasing.
Properties that need updating
A home that needs work may offer an opportunity to improve its value or rental appeal. However, renovation costs, permits, contractor availability, and the time required to complete the project can all affect the final return.
Long-term rentals versus other strategies
Think carefully about the type of tenant you want to serve and the rental model you plan to use. Expected income, operating costs, regulations, and management needs can differ considerably.
No matter which strategy you choose, research comparable rents, evaluate the property's condition, and build a realistic budget before making an offer. Local market conditions can vary by neighborhood, so national investor trends should be treated as context—not a guarantee of local performance.
7. How to Evaluate Whether an Investment Property Is Worth It
Before purchasing a rental property, take time to work through the numbers.
Step 1: Estimate realistic rental income. Research comparable rentals and use a conservative estimate rather than assuming you can charge the highest advertised rent.
Step 2: Calculate all operating expenses. Include taxes, insurance, maintenance, vacancy reserves, HOA dues, and management costs where applicable.
Step 3: Determine your financing costs. Ask a lender about investment-property loan requirements, down payments, interest rates, and closing expenses.
Step 4: Account for repairs and capital expenses. Review the roof, HVAC, plumbing, electrical systems, and other major components. Set aside money for future replacements.
Step 5: Stress-test the investment. Consider what happens if rent is lower than expected, insurance increases, an expensive repair occurs, or the property remains vacant for several weeks.
Step 6: Define your long-term goal. Are you primarily seeking monthly cash flow, long-term appreciation, equity growth, or a combination? Knowing your objective will help you determine whether a property fits your strategy.
It can also be helpful to consult a qualified tax professional and financial adviser about how rental income, expenses, depreciation, and the use of your capital fit into your broader financial plan.
Is Buying an Investment Property Still Worth It in 2026?
For the right investor and the right property, real estate can still be a valuable part of a long-term wealth-building strategy.
But today's market rewards careful analysis more than optimistic assumptions. Higher borrowing costs, insurance expenses, property taxes, and cooling rents mean investors need to understand exactly how a property is expected to perform.
The most important factors are what you pay, what the property can realistically earn, and how much it will cost to own and maintain over time.
If you're considering purchasing a rental property in Concord, Kannapolis, Harrisburg, or the greater Charlotte area, researching local market conditions and evaluating comparable properties can help you make a more informed decision.
Thinking about investing in real estate locally? I can help you explore available properties, compare neighborhood options, and gather the information you need to evaluate your next move.
