Investment Properties Sell Quickly as Single-Family Home Sales Slow, Broker Reports

Written by:

Rudi Davis

Date:

18 Feb 2026

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As most of the residential real estate market cools from pandemic-era highs, one segment is moving at a surprising pace: small investment properties. According to Jillian Kemmerer, owner and associate broker at Luxe Homes Real Estate LLC in Scranton, Pennsylvania, duplexes and triplexes are attracting buyers far faster than traditional single-family homes. “If anything is still going faster than sometimes I expect them to go, it’s investment properties, duplexes, triplexes,” Kemmerer says. She attributes this to a growing belief that real estate is a reliable way to build long-term wealth.

This strong demand for investment properties stands out against the backdrop of slower sales in the broader residential market. Kemmerer sees this as clear evidence that investors are behaving differently from traditional homebuyers, and that factors beyond mortgage rates or affordability drive their decisions.

Investors Focus on Fundamentals

Kemmerer points out that investment property buyers approach deals with a focus on financial fundamentals. Rather than getting caught up in emotions or market hype, they analyze purchase price, expected rental income, and projected expenses before making an offer. “It really does come down to the numbers,” Kemmerer explains. “What number are you buying at? What is a reasonable market rate to expect? And what kind of repairs do you have to make?”

This numbers-driven discipline helps insulate investment property sales from the hesitation affecting much of the residential market. Investors are quick to walk away from deals that don’t meet their return criteria, but move fast when the math works, regardless of broader economic uncertainty or interest rate changes.

Scranton’s rental-heavy market adds to the appeal. Nearly 70% of city residents are renters, creating stable demand for well-maintained units. “We still have a decent cap rate. We’re still probably around the seven to 8% cap rate overall,” Kemmerer notes. These fundamentals attract both local and out-of-town investors looking for reliable cash flow. “We still see a lot of cash buyers,” she adds, highlighting continued interest from outside the region.

A Broader Range of Investors

One of the most notable trends Kemmerer observes is the growing diversity among buyers. The investor pool is no longer limited to institutional buyers or wealthy individuals. More families and first-time investors are entering the market, drawn by the potential for monthly cash flow and long-term appreciation.

“It’s not just these big corporations. It’s families that want to leverage their ability to buy real estate into something more like cash flow every month,” Kemmerer says. She recently advised a young couple interested in “house hacking,” purchasing a duplex, living in one unit, and renting out the other to offset their housing costs. This approach, once considered niche, is now common among buyers looking to build wealth with manageable risk.

This democratization of real estate investing is reshaping the market. Buyers are seeking properties that provide immediate rental income and the chance to grow equity, rather than betting on rapid appreciation or flipping for quick profits.

Risks for Inexperienced Investors

However, Kemmerer warns that the influx of new investors brings risks, especially for those who overestimate their understanding of the market. She sees a pattern where some buyers, influenced by online content or podcasts, assume expertise without grounding their decisions in local data or professional advice. “It’s the people who listen to two or three podcasts and think they’re the experts who don’t listen to what we say, and then they wonder why they’re bleeding money, or they can’t rent their property for $1,500 when we told them it’s only a $1,200 unit,” she says.

The most successful investors, according to Kemmerer, are those who seek out guidance from experienced realtors, property managers, and other investors. “The people who take the advice of their realtors, who take the advice of their property managers, who learn from other investors, usually are the ones who do pretty well,” she notes.

This divide between disciplined, advice-seeking investors and overconfident newcomers helps explain why some investment properties generate strong returns while others become costly liabilities.

Integrated Services Gain Appeal

To address these challenges, Kemmerer’s firm has built an integrated model that supports investors through every stage of ownership. Luxe Homes Real Estate LLC operates as both a brokerage and property management company, helping clients identify suitable properties, negotiate purchases, place tenants, and handle ongoing management.

“We can walk you through the entire process, from finding the right property, helping you purchase it, finding the right tenants, and helping you get your check every month,” Kemmerer says. This approach appeals to investors who want the benefits of rental income but are wary of the day-to-day complexities of landlordship.

Professional property management, she argues, often pays for itself by reducing vacancy rates, handling tenant issues, and ensuring properties are maintained to local standards. “A lot of people get intimidated by real estate and being a landlord and buying those investment properties, because they’re like, I don’t want to deal with those horrible tenants,” Kemmerer explains. By outsourcing operations, investors can focus on strategy and growth rather than daily management headaches.

What This Means for the Market

The continued strength of the investment property segment highlights a shift in how people are thinking about real estate. While traditional single-family home sales have slowed, demand for properties that generate cash flow remains robust. Investors — both seasoned and new — are looking for deals that make sense on paper and provide a path to long-term wealth.

For buyers considering this path, Kemmerer’s experience underscores the importance of research, realistic expectations, and professional guidance. The market rewards those who approach investment with discipline and a willingness to learn, while punishing those who rely on surface-level knowledge or speculation.

As the broader residential market recalibrates, investment properties in strong rental markets like Scranton are likely to remain in demand. Whether this trend will continue or fade as market conditions change is uncertain, but for now, properties with clear potential for cash flow and appreciation continue to attract serious buyers, even as single-family home sales slow.