Top real estate investors share how they’re investing in 2025

• Real estate investors share the strategies they are using in 2025.
• An investor buys mobile home parks for tax incentives.
• Another is the bias toward medium-term leases, which tend to have higher cash flow than long-term leases.

Prudent real estate investing can create long-term wealth, and while every investor has their own unique circumstances—from the risk they’re willing to take to how much money they have available—there are lessons to be learned from veteran investors.

Business Insider asked top real estate investors who have achieved financial independence or are on track to do so about their plans for 2025.

Here’s a look at how they’re positioning themselves as we head into a new year and what trends are driving their decisions.

Ludomir Wanot buys mobile home parks for tax incentives

Seattle investor Ludomir Wanot, who built his fortune by wholesaling and purchase long term rentalsadds mobile home parks to its portfolio.

They can depreciate at a faster rate than other real estate investments and can significantly reduce an investor’s taxable income, he explained: “The government actually allows you to depreciate at least up to 60% of the purchase price of the asset’s value in the first year. . I bought a million dollar property in New York, which I was able to depreciate to $600,000 in the first year, and that basically reduced my taxable income. to zero”.

It’s a win-win, he added: “I’m providing housing for people who earn as little as $1,000 a month, and I’m offering it to them at a significantly lower rate of around $200 a month. community, I can rebuild a community and I get this crazy incentive from the government.”

Mike Zuber is looking for motivated sellers

Mike Zuber, who built a rental portfolio in Fresno, which allowed him to retire early, expects to see “more motivated salespeople” in 2025.

“I think there are some people who are just going to have to sell — life events, death, divorce, all of that,” he said. “And if the house is not perfect, no owner will buy it. The general public is basically out of the real estate market. So if you have a house that’s a little dated, a little old, a little too close to the busy streets. , eventually you will have to sell to an investor.”

That’s good news for Zuber and other real estate investors looking for deals. He is prepared to “write deals that make sense at a high cost of capital.”

Dion McNeeley is considering selling a property and capitalizing on an IRS rule

Dion McNeeley, who has spent more than a decade carefully building a portfolio of rental properties in Washington state, has never sold a property.

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“I’m a slow, boring investor: save a down payment, buy the next place; save a down payment, buy the next seat,” he said.

That may change in 2025, in part because of an intriguing tax break he’ll be eligible for.

McNeeley’s most recent real estate project was buying and rehabilitating a duplex. Live in one unit and rent the other. In July 2025, he will have owned and lived in the duplex for two years, which qualifies him for the Section 121 Exclusion, an IRS rule that allows taxpayers to exclude up to $250,000 of gain from the sale of property. The main requirement is that you must use the home as your main residence for at least two of the five years prior to the sale.

“I could sell it, make a few hundred thousand dollars in profit and not have to pay a dime in taxes — and either go and repeat the process somewhere else, or buy something with the proceeds and have a bigger and nicer place.” said McNeeley, who plans to make a decision in July after doing an evaluation.

Nyasia Casey is testing a strategy she might want to scale up: building tiny houses

Nyasia Casey, who lives in New York and owns investment real estate in baltimoreis excited about a new project in 2025: building a tiny house on land her friends own in upstate New York.

“I’m going to buy a trailer and build a tiny house. I’ll keep it on wheels so I can transport it if I want to go somewhere else with it — if I buy my own land,” said Casey, who begins construction in the spring.

Likely to experiment with including it on a short-term rental platform like Airbnb, he said: “I like the idea that it’s a more affordable option for people to go explore instead of renting something for $300 a night . So it’s something I’m testing and then if it works, I’ll definitely think about buying land and doing some more.”

Dana Bull is experimenting with medium-term rentals

Massachusetts investor Dana Bull has built wealth by following a specific strategy: buying quality properties with upside in solid areas and filling them with long-term tenants.

However, with the most recent property she bought and renovated in 2023, she decided to experiment with operating a medium term rentalwhich is a lease that usually lasts between three and nine months.

“It’s my first experience with anything other than a long-term lease. I’m kind of in uncharted waters, but it’s been great,” said Bull, who plans to test the medium-term lease strategy for at least 18 months. It’s more work than managing a long-term tenant, but she said it brings in more income, which is helpful because she bought when interest rates were relatively high.

Bull has already refinanced once, which knocked about $250 off her mortgage.

“I’d like it to go down again and I could save another 250,” she said. “At that point, I would probably switch it to a long-term rental because it would be profitable enough and less of a headache, but now I’m just experimenting for my own curiosity and want to understand more about this niche . “

Karina Mejia expands her portfolio, starting with a BRRRR

Karina Mejia, who owns investment properties in Boston, where she lives, and Augusta, Ga., called off the acquisition in 2024 but plans to expand in 2025.

“I would definitely like to continue to buy property primarily because of the tax benefits,” she said. “This year, we haven’t closed anything, so I’ll really see the effect on my taxes.”

She is under contract for a three-family home in Boston and plans to close at the end of January.

“I’m going to end up renovating and doing it,” said Mejia, who is also an agent and jumped on this property when he saw it. “I have it in tune for 850 and the rating is already back to 930 in its condition. I’m thinking of putting some money into it and I know that the ARV, or after repair value, will end up being over a million, so I might even get more money back when I refinance than I put in, which would be great because then I get my money back and can invest it in another property next year.”

Peter Keane Rivera leans into his one-room rental strategy

Part-time investor Peter Keane-Rivera, who owns single-family homes in the greater Seattle area, is backing rental strategy by room.

“I’m looking to expand my single-family home, room rental portfolio,” he said. “My strategy will be to accelerate my real estate acquisition while learning how to expand my room rental operations.”

Finding tenants to share a space has not yet been a challenge for Keane-Rivera, who lists her rooms on Roomster, Roomies and Facebook Marketplace.

“There are a lot of different subgroups that are looking for something more economical: people coming out of college, people getting their first job, people who just got divorced,” he said. “I would say everyone who rents with me is looking to save money.”

The room rental strategy produces generous positive cash flow, around $1,000 a month per property, and reduces his risk, he said: “You’re diversifying your cash flow by having four tenants under one roof instead of one. Very rarely will you have all the tenants. move, and if you do, that indicates a bigger problem that you should probably address.”