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Will the QBI Deduction for Real Estate Investors Expire in 2026? Unpacking Trump’s “Big Beautiful Bill” and Your Investment Future

CLEVELAND, OH – JULY 11, 2025: For savvy real estate investors, understanding the ever-evolving tax landscape is paramount to maximizing returns. A significant piece of this puzzle has been the Qualified Business Income (QBI) deduction, a powerful tax incentive that has provided substantial relief for eligible real estate ventures. However, with 2026 on the horizon, a critical question looms: Will the QBI deduction for real estate investors expire in 2026?

QBI Deduction for Real Estate Investors

The answer, happily for real estate investors, appears to be a resounding no, thanks to provisions within President Donald Trump’s proposed “Big Beautiful Bill.” This legislative initiative aims to make the QBI deduction permanent and even enhance some of its features, providing much-needed stability and continued tax benefits for those in the real estate sector.

Let’s delve into what this means for your investment strategy, how you can leverage these ongoing benefits, and why strategic financing partners like GHC Funding are essential to your success, especially for real estate opportunities in the robust Ohio market.

The QBI Deduction: A Foundation for Real Estate Profitability

Introduced as part of the Tax Cuts and Jobs Act (TCJA) of 2017, the QBI deduction (also known as Section 199A) has allowed eligible self-employed individuals and owners of pass-through entities (like LLCs, S-corporations, and partnerships) to deduct up to 20% of their qualified business income.¹ For real estate investors, this has translated into significant tax savings on rental income, provided their activities qualify as a “trade or business.”

Initially set to expire at the end of 2025, the prospect of its sunset has been a concern for many. However, the “Big Beautiful Bill” aims to remove this uncertainty, making the QBI deduction a permanent fixture in the tax code. While the current 20% deduction is slated to remain, the proposed legislation also includes adjustments to income phase-out thresholds, potentially broadening its applicability for some investors. This permanence provides a crucial layer of predictability, allowing investors to plan with greater confidence for long-term growth and profitability.

Fueling Your Growth: The Power of Strategic Financing

With the QBI deduction poised for permanence, the focus shifts to how real estate investors can best capitalize on this favorable tax environment. This is where strategic financing becomes incredibly important. Whether you’re acquiring new properties, rehabilitating existing ones, or seeking to optimize your portfolio, the right loan product can make all the difference.

At GHC Funding, we specialize in providing tailored financing solutions designed to empower real estate investors. Our expertise spans a wide range of products, including:

• DSCR Loans: Ideal for investors focused on cash-flowing properties, DSCR (Debt Service Coverage Ratio) loans primarily evaluate the property’s income-generating potential rather than the borrower’s personal income.² This makes them an excellent choice for experienced investors looking to scale their portfolios quickly and efficiently.
• SBA 7a Loans: A versatile option for various business needs, including real estate acquisition and renovation for owner-occupied properties.³
• SBA 504 Loans: Perfect for significant real estate and equipment purchases, offering long-term, fixed-rate financing.⁴
• Bridge Loans: Providing quick access to capital for short-term needs, such as property acquisition before permanent financing is secured or for properties requiring significant rehabilitation.⁵
• Alternative Real Estate Financing: For unique situations that may not fit traditional lending criteria, GHC Funding offers flexible and innovative solutions.

What's the most appealing aspect of a DSCR loan for your investment property financing needs?

A) No personal income verification (no W-2s or tax returns needed!)B) Approval based on the property's cash flow (DSCR)C) Faster closing times compared to traditional mortgagesD) Flexibility for self-employed investors and complex financial situations

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Current Market Insights: Navigating Rates and Requirements in July 2025

As of July 2025, the lending landscape for real estate investors continues to evolve. Understanding current interest rates and loan requirements is crucial for making informed decisions.

DSCR Loan Rates (July 2025): DSCR loan interest rates typically range between 6.5% to 9.00%.⁶ Several factors influence where your rate will fall within this spectrum:

• Property Type: Short-term rentals (STRs) or specialized multifamily properties might see slightly different rates.
• Location and Rent Stability: Properties in stable, high-demand rental markets like those found in key Ohio metros often secure better terms.
• DSCR Ratio: A higher DSCR (meaning the property generates significantly more income than its debt service) signals lower risk to lenders, leading to more favorable rates.⁷ A DSCR of 1.20 is often a baseline, with ratios of 1.30-1.50+ offering the most competitive pricing. For instance, a DSCR of 1.00-1.10 might see rates around 9.25%, while 1.40+ could bring rates down to 7.75%.
• Borrower’s Credit Score: While DSCR loans emphasize property income, a strong personal credit score (typically 620 minimum, with 700+ leading to better terms) can positively impact your rate.
• Down Payment Size: A larger down payment (generally 20% to 30% for DSCR loans, with lower DSCRs requiring higher down payments) can also result in a lower interest rate.⁸

Typical DSCR Loan Requirements:

• No Personal Income Check: This is a major advantage for investors with complex income structures or those who prefer to keep their personal finances separate from their investment properties. Qualification is based primarily on the property’s cash flow.
• Entity Requirements: Loans are often made to an LLC or other business entity, offering liability protection.⁹
• Property Types Accepted: A wide range of investment properties are eligible, including single-family rentals, multi-family units, short-term rentals, and sometimes even commercial properties.¹⁰
• Minimum DSCR: Typically 1.20x, though some lenders may go as low as 1.00x with higher rates and potentially larger down payments.
• Reserves: Lenders usually require a certain number of months of reserves (e.g., 3-12 months of principal, interest, taxes, and insurance – PITI).

Other Loan Types (July 2025 Averages):

• SBA 7a Loans: Variable rates for larger loans (over $350,000) are around 10.50%, with fixed rates for loans over $250,000 at approximately 12.50%. These are based on the prime rate plus a lender-specific spread.
• SBA 504 Loans: As of April 2025, 25-year debentures are around 6.437%, with 20-year debentures at 6.457%. These rates are highly competitive for long-term commercial real estate financing.
• Bridge Loans: Rates can vary significantly based on the project’s risk profile and terms. For apartment bridge loans, rates were recently around 5.24% as of July 1, 2025.

GHC Funding: Your Go-To Lender for Ohio Real Estate Investment

For real estate investors operating in Ohio, GHC Funding stands out as the preferred partner for several compelling reasons. We understand the nuances of the Ohio market and the unique needs of real estate investors, positioning us to deliver superior service and optimal financing solutions.

• Flexible Underwriting: Unlike traditional banks that adhere to rigid criteria, GHC Funding offers flexible underwriting, focusing on the viability of your real estate project and its income potential, especially with DSCR loans. This means less red tape and a greater chance of approval for diverse investment strategies.
• Market Expertise: Our team possesses deep expertise in the real estate investment landscape, both nationally and specifically within key Ohio markets. We can offer insights into market trends, property valuations, and investment opportunities in cities like Columbus, Cleveland, and Cincinnati.
• Streamlined Process: We recognize that time is money for real estate investors. Our streamlined application and approval process ensures quick closings, allowing you to seize opportunities without delay. This is particularly beneficial for competitive markets where speed is of the essence.
• Tailored Solutions: Whether you’re targeting a flip in Clintonville (Columbus, 43214), a buy-and-hold in Ohio City (Cleveland, 44113), or a new development near the burgeoning tech sector in Over-the-Rhine (Cincinnati, 45202), we can craft a financing package that aligns perfectly with your investment goals.

Advanced Geo-Targeting SEO: Ohio’s Investment Hotbeds

Ohio presents a compelling landscape for real estate investors, offering a diverse array of opportunities across its major metropolitan areas. Our geo-targeting strategy focuses on these high-potential regions:

• Columbus (Central Ohio): As the state capital and a rapidly growing tech hub, Columbus offers strong rental demand and appreciation potential.¹¹
  • Prominent Zip Codes: 43201 (Victorian Village/Short North – ideal for urban multi-family or short-term rentals), 43215 (Downtown/German Village – historic properties, luxury rentals), 43214 (Clintonville – family-friendly, stable rentals).
  • Key Neighborhoods: German Village (historic, high-end rentals), The Short North Arts District (trendy, short-term rentals, retail), Franklinton (up-and-coming, redevelopment opportunities).
  • Investment Scenarios: Consider renovating historic townhouses in German Village for upscale rentals, or developing small multi-family units near Ohio State University in areas like University District. The ongoing revitalization of the Scioto Mile also presents opportunities for mixed-use developments.
• Cleveland (Northeast Ohio): With a strong healthcare industry and burgeoning manufacturing, Cleveland’s market offers affordability and revitalization potential.
  • Prominent Zip Codes: 44113 (Ohio City – historic, trendy rentals), 44106 (University Circle – student housing, medical professionals), 44102 (Gordon Square Arts District – artistic community, unique rentals).
  • Key Neighborhoods: Ohio City (historic homes, robust rental market), Tremont (charming, popular for young professionals), Detroit-Shoreway (arts and culture, developing).
  • Investment Scenarios: Focus on renovating Victorian homes in Ohio City for long-term rentals or exploring value-add opportunities in multi-family properties in areas like Collinwood as the city continues its resurgence.
• Cincinnati (Southwest Ohio): Known for its corporate headquarters and diverse economy, Cincinnati provides a stable investment environment.
  • Prominent Zip Codes: 45202 (Downtown/Over-the-Rhine – historic, urban living), 45206 (East Walnut Hills – historic, community feel), 45208 (Hyde Park – affluent, high-end rentals).
  • Key Neighborhoods: Over-the-Rhine (historic, revitalized, short-term rentals, mixed-use), Hyde Park (upscale, family rentals), Northside (eclectic, growing community).
  • Investment Scenarios: Explore opportunities in the rapidly redeveloping Over-the-Rhine for boutique apartments or short-term rentals, capitalizing on the proximity to downtown amenities and sports venues. The development around the Cincinnati Innovation District also presents promising avenues for housing.
• Akron/Canton (Northeast Ohio): These cities offer a more affordable entry point for investors, with steady rental demand driven by local universities and industries.¹²
  • Investment Scenarios: Single-family rentals or small multi-family properties around the University of Akron or Kent State University campuses in Akron (44325). In Canton, consider properties near the Pro Football Hall of Fame or the growing healthcare sector.
• Dayton (Southwest Ohio): With a strong aerospace industry and significant revitalization efforts, Dayton offers affordable investment opportunities.¹³
  • Investment Scenarios: Look for buy-and-hold opportunities in emerging neighborhoods, particularly near Wright-Patterson Air Force Base or the revitalized downtown core in areas like Oregon District (45402).

Unique Selling Proposition: DSCR Loans vs. Traditional Financing

The DSCR loan, a cornerstone of GHC Funding’s offerings, provides a distinct advantage over traditional financing for real estate investors.

Traditional Financing (Banks):

• Personal Income Focus: Heavily reliant on borrower’s personal income, tax returns, and DTI (Debt-to-Income) ratios.
• Lengthy Underwriting: Can involve extensive paperwork and longer closing times due to detailed personal financial scrutiny.
• Less Flexible: Often less adaptable to unique investment property scenarios or aggressive growth strategies.

DSCR Loans (GHC Funding):

• Property-Centric Approval: Loan qualification is based primarily on the property’s ability to generate sufficient income to cover its debt service. This means no personal income check for the borrower, simplifying the process and allowing investors to keep personal finances private.
• Speed and Efficiency: Streamlined underwriting leads to faster approvals and closings, enabling investors to act quickly on lucrative opportunities.
• Investor-Friendly: Designed specifically for real estate investors, accommodating various property types and investment strategies, including those with multiple properties or complex income streams.
• Scaling Potential: Easier to qualify for multiple properties as personal income is not a limiting factor.

This fundamental difference means DSCR loans unlock doors for investors who might be hindered by the stringent requirements of traditional lenders, allowing for greater scalability and flexibility in their investment ventures.

QBI Deduction Q&A Section

External Resources for Ohio Real Estate Investors

To further empower your investment journey in Ohio, consider these valuable resources:

• Ohio Department of Commerce – Division of Real Estate & Professional Licensing: https://www.com.ohio.gov/divisions-and-offices/real-estate-and-professional-licensing/real-estate-licensing (Provides official regulations, licensing information, and general oversight for real estate activities in Ohio.)
• Ohio Real Estate Investors Association (OREIA): https://www.oreia.com/ (A statewide organization offering education, networking, and legislative advocacy for real estate investors across Ohio, with local chapters in major cities.)
• Redfin Ohio Housing Market Data: https://www.redfin.com/state/Ohio/housing-market (Provides current market trends, median home prices, sales volume, and days on market for Ohio and its metropolitan areas, offering valuable market insights.)
• Ohio Opportunity Zones: https://opportunityzones.ohio.gov/ (Explore designated Opportunity Zones across Ohio for potential tax incentives on long-term investments in distressed communities.)
• HUD.gov / U.S. Department of Housing and Urban Development (Ohio Page): https://www.hud.gov/states/ohio (Offers information on federal housing programs, resources for various housing needs, and links to local housing authorities.)

Unlock Your Investment Potential with GHC Funding

The permanence of the QBI deduction under President Trump’s “Big Beautiful Bill” signals a bright future for real estate investors. To truly capitalize on this favorable tax environment and the burgeoning opportunities in the Ohio market, you need a lending partner who understands your goals and can provide the most advantageous financing.

GHC Funding is that partner. Our DSCR loans offer the flexibility and speed you need to acquire, renovate, and expand your portfolio without the personal income hurdles of traditional financing. We are uniquely suited to serve the ambitious real estate investor, offering tailored solutions, competitive rates, and a deep understanding of market dynamics.

Don’t let financing be a roadblock to your next successful investment. Explore our comprehensive loan offerings and experience the GHC Funding difference.

Visit GHC Funding today at www.ghcfunding.com to learn more about our DSCR Loans, SBA 7a loans, SBA 504 Loans, Bridge Loans, and Alternative Real Estate Financing, and take the next step towards realizing your real estate investment dreams.

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