By: citybiz
August 4, 2025
Q&A with Charles Goodwin, VP of Bridge and DSCR Lending at Kiavi on the Rental Market, Insurance Considerations and What’s Driving Demand
Charles Goodwin is senior director of sales at Kiavi, a leading provider of financing to real estate investors, where he oversees the company’s direct sales channels. He is also the co-founder and managing member of GBL Partners, a residential real estate company specializing in neighborhood revitalization through value-add opportunities. Goodwin and his wife live in San Diego.
How would you describe the state of the rental market right now?
Right now, the rental market is bifurcated, which means we’re seeing vastly different performance depending on both region and rental type. On the apartment side, there was a record number of construction starts in the COVID era. Those deliveries are still working their way through the system and putting downward pressure on rents—especially in the apartment sector. But we’re starting to see that wave get absorbed, which suggests the market may stabilize and rent growth could strengthen again.
Single-family rentals (SFR), build-to-rent (BTR), and apartments are all holding their own compared to the for-sale market, which has slowed down as both resale and new construction inventory builds. Investors should be watching markets that are seeing strong demand but didn’t experience a major construction boom, as the cost to own a home nationally is now roughly twice as expensive as renting a decade ago and that affordability gap is pushing a lot of would-be buyers into the rental pool—especially in the SFR market. We’re still seeing national SFR rent growth around 4% year-over-year, even if it’s not the 10–15% growth we saw during the pandemic boom.
That includes the Midwest and parts of the West Coast and Northeast, where supply is tighter and rent growth is holding up. It’s a different story in some Sun Belt markets, where oversupply has led to more competition and slower rent growth. We saw a lot of SFR, BTR, and apartment construction in those high-growth markets, and it’s just taking a bit longer for that inventory to work its way through.
Why does the Midwest stand out?
Regionally, the Midwest sticks out as the big winner because it had less new construction during the pandemic, so it’s seeing strong rent performance today. It’s not the same level of inventory that’s pushing down rents in places like Texas where supply flooded the market. It’s a more stable environment for investors looking for consistent returns. Even so, I’ve got properties there myself, and I’m seeing signs of increased leasing activity that tells me some of that inventory is working its way through. The Midwest also stands out because unemployment has remained exceptionally low in select markets, like Indianapolis, Indiana. This, plus the waning out-migration observed during the pandemic, is keeping the Midwest in good shape.
What should investors know about single-family rental performance? Is there any indication that rents will rise again in oversupplied markets?
SFRs are doing well because homeownership costs are so high right now—about double the cost of renting, nationally. In markets like Texas, where listings surged in recent years, we’re starting to see inventory levels taper off. That suggests a stabilization is underway, which could ease pressure on rents and bring back stronger growth over time. Some homeowners who aren’t getting the offers they want are choosing to rent their properties instead. That adds to the rental supply and puts some downward pressure on rents. It’s a more competitive leasing environment overall.
OK, so you’ve bought a property–what are the essential insurance considerations REIs need to understand?
At a basic level, every investor should have three types of coverage: first, property coverage for rebuilding in case of damage or catastrophe. Next, liability insurance to protect against lawsuits or accidents on the premises. And finally, loss of rent coverage to protect income if your property becomes uninhabitable. From there, you might need specialized coverage like builder’s risk (for major renovations), vacancy coverage, or short-term rental endorsements if you’re operating outside traditional long-term leases.
Keep in mind that if you’re closing during hurricane or wildfire season, insurers may put a pause on new policies. We encourage getting coverage bound early—30 to 45 days in advance—so that your closing isn’t delayed. Should you need to file a claim, consider the size of the claim and your deductible. For small issues like minor siding damage, it’s usually better to pay out of pocket. But for major events—fires, flood damage, serious liability—definitely file. Just be mindful of claim frequency, as it can impact your future coverage and premiums.
I’d also emphasize that to avoid closing delays with your lender, it’s smart to bind your policy at least a few days in advance of closing. Sometimes late-stage insurance corrections can delay closing.
Are foreclosures likely to become a bigger opportunity for investors?
Not in the short term. Despite media noise, foreclosure rates remain low. Homeowners are in strong equity positions, so forced selling isn’t widespread. Don’t count on distressed inventory—investors need to go upstream and build direct relationships with sellers earlier in the cycle.
Should investors look out of state to build their portfolios? What factors matter most when selecting a new market?
I do this personally, as I live in California and own rental properties in Texas. The main advantage is access to more affordable housing and potentially higher ROI. But it does come with challenges: less oversight, difficulty building local vendor relationships, and regulatory differences. If you go out of state, work with someone you trust locally and do your due diligence.
Job growth is the number one driver in our view. It underpins demand and long-term stability. Also, look at rental supply, affordability, and market fundamentals. Redfin’s data center is a great resource for checking for-sale and rental trends in any given area.
What should investors keep in mind when entering a new market they don’t know well?
Real estate is extremely local. What works in one area might not translate to another and could cause real challenges, whether it’s zoning, permitting, or what shows up on a preliminary title report. If you’re going out of state, you need someone on the ground that you trust. Local eyes can help you navigate everything from regulations to building a reliable team of third-party vendors.
You want to understand how your strategy fits the market and the neighborhood. Every location has its own nuances, and going in blind can lead to costly missteps. Do your due diligence, and work with partners who know the local landscape.
Is the BRRRR (Buy, Renovate, Rent, Refinance, Repeat) strategy still effective in today’s environment?
Yes, the fundamentals still work. The key is using the right financing. Typically, you start with a short-term bridge loan to purchase and renovate the property. Once the rehab is complete and the unit is rented, you refinance into a DSCR (Debt Service Coverage Ratio) loan. That helps you pay off the bridge loan—which usually carries a higher interest rate—and move into a longer-term loan once the property is stabilized.
The advantage here is potentially stronger cash-on-cash returns. If you renovate well and force some value creation, you may be able to recoup part of your initial investment or even pull out a little cash. At the end of the day, you’re left with a stabilized rental property and more flexibility for the next deal.
What should investors focus on in the current environment?
Stick to the fundamentals. Build relationships with sellers, have your financing and insurance ready to go, and don’t wait around for a major foreclosure wave—it’s probably not coming. Homeowners have a lot more equity today, and we’re not seeing the same distress we did in past cycles. The investors who take a strategic and prepared approach tend to see the best outcomes.
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