A Tough Market Can Still Open Doors. Here's Where to Look.

I have three closings this week. All three are cash.

People are still buying. Some have cash. Others see an investment worth improving. And some recognize that less competition could give them an opening they might not have when everyone decides it's time to buy again.

Here are three groups to watch.

1. Cash Talks. Creativity Opens Doors.

Buyers with cash or substantial down payments have flexibility that matters in this market. Redfin reported that 38.1% of Riverside metro purchases were cash in March 2026, compared with 28.8% nationally.

I'm also seeing renewed interest in subject-to purchases and wraparound financing. My available listing at 3223 San Jose Avenue in Daly City offers a proposed subject-to purchase involving approximately $618,000 in existing mortgage debt at 2%. Ownership would transfer while the existing mortgage remains in the seller's name.

It's one of four properties I currently have offering a mix of subject-to and wraparound structures. Each requires an attorney to review the existing loan, structure the agreement, and address risks for everyone involved.

The distinction matters. A subject-to purchase keeps the existing mortgage in the seller's name. A wraparound mortgage involves seller financing that encompasses the existing debt, with the seller using the buyer's payments to pay the underlying loan.

These arrangements require careful evaluation and the resources to handle the risk. An underlying lender may have the right to demand repayment after a transfer. Every major move involves risk and reward. Understanding both is how you make an informed decision.

2. See the Potential. Run the Numbers.

Several of my clients are pursuing Coachella Valley short-term rentals that need better management, updated interiors, or simply someone who cares again. I've helped clients give tired rentals a makeover and a fresh direction. A property that has lost its appeal to one owner may deserve a second look from another.

Take my listing at 547 N. Farrell Drive in Palm Springs, a Meiselman original with a signature butterfly roof and classic desert appeal. Selected by Rabbu.com for premium promotion due to its short-term rental appeal, it's an example investors can explore.

Rabbu is a short-term rental investment marketplace and research platform that helps buyers evaluate properties using market data, historical earnings where available, and projected revenue. Those projections provide a starting point for evaluating an investment, alongside actual expenses and local rental permissions.

DSCR loans, short for debt-service coverage ratio loans, help investors qualify primarily based on the property's rental income relative to its housing debt obligations. Credit, down payment, and lender requirements still matter. Some programs accept rental history or approved income projections.

There is also a federal tax incentive to explore. The One Big Beautiful Bill Act restored 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025. Eligible furnishings and certain components identified through cost segregation may qualify. This doesn't mean you can write off the entire property purchase, and a makeover alone doesn't establish eligibility. Participation and loss limitations apply, and California does not conform to federal bonus depreciation. Have your tax professional assess the strategy before you buy.

In Central Los Angeles, Koreatown and Downtown, I'm watching condo pricing create a different conversation. Redfin reports that Downtown's median sale price across all home types declined 10.8% year over year in the three months ending September 2026. This is neighborhood data, not a condo-only statistic, but it warrants attention.

Could ownership begin to compete with your rent? Could a condo make sense as a rental serving nearby university students or professionals? The answer starts with the full cost, including HOA dues, taxes, insurance, assessments, and rental restrictions.

UCLA Downtown, at 433 S. Spring Street, houses UCLA Extension and selected UCLA Law programs, adding educational and professional activity to the Historic Core. Downtown also offers Cal State LA’s 16-month Fully Employed MBA, designed for working professionals with Saturday in-person classes and remote assignments. It's another educational resource for people building their careers in the city. That presence could strengthen interest in nearby residential buildings such as the Rowan.

The Olympics also belong in the longer view. An LA28-commissioned LAEDC study projects $20.5 billion to $40.6 billion in regional economic output from preparations and the 2028 Olympic and Paralympic Games. That is projected economic activity, not guaranteed appreciation, but it is a reason to study the region's future alongside today's prices.

3. A Smaller Down Payment Can Still Make a Big Move.

If you qualify for FHA, VA or USDA financing, start exploring what is possible. FHA down payments can be as low as 3.5%, while eligible VA and USDA borrowers may qualify with no down payment, subject to their individual requirements.

Expand your search. Consider Desert Hot Springs, Yucca Valley, Twentynine Palms, Joshua Tree, Pioneertown, Thermal, Sugarloaf, or Idyllwild. Have your lender check individual addresses for USDA eligibility rather than assuming an entire community qualifies. USDA requires qualifying household income, an eligible property, and primary residence occupancy.

You may also qualify as a first-time buyer again. Many programs use a three-year ownership lookback, although definitions vary. Ask your lender to confirm your eligibility and occupancy requirements before planning to live in a property for a couple of years.

In my experience, some sellers perceive a smaller down payment as greater risk. I put more weight on thoroughly reviewed creditworthiness, a solid preapproval, and a lender who can deliver.

If rates fall and more buyers return, smaller-down-payment buyers could face stronger competition from cash and larger-down-payment offers. Lower rates don't guarantee higher prices. But a lower rate won't necessarily produce a better purchase if you have to compete harder for the home.

All I keep hearing is that the market is weak. I think staying in one lane makes a challenging market even harder. You have to understand the financing, recognize the potential, and know how to put the pieces together.

Our team is wrapping up its first year at Epique Realty with $72 million in sales and 112 transactions, without spending a single dollar or paying a commission split for portal leads through programs like Zillow Flex or Redfin's Partner Program.

Before you decide to wait, let's compare what you could buy today. A negotiable price and less competition may offer more value than a lower rate later, as long as today's payment works without relying on a future refinance.

Keep your mind open. Bring your lender, your real estate agent or broker, and your tax professional into the conversation. We're always available to help you explore the opportunities right before your very eyes.