For investors evaluating multifamily real estate in 2026, one part of the investment deserves more attention than ever:

The debt.

Higher interest rates and more conservative lending have changed how multifamily deals are structured. During a recent webinar, Julie Peterson of Old Capital shared how lenders are evaluating properties today and what investors should understand before committing capital.

The biggest takeaway?

A strong property can still become a weak investment if the financing does not make sense.

Multifamily Lending Has Become More Conservative

A few years ago, multifamily buyers had access to inexpensive debt and higher leverage.

Today, lenders are generally more cautious.

Higher interest rates, changing property values, and uneven operating performance have resulted in tighter underwriting and, in many cases, lower loan amounts.

For investors, that puts greater emphasis on buying properties that work under realistic assumptions rather than relying on cheap debt to generate returns.

More Debt Does Not Always Mean a Better Investment

Leverage can increase potential returns, but it can also increase risk.

Lenders are paying close attention to whether a property's current cash flow can comfortably support its mortgage payments. If the income does not support the desired loan amount, the lender may reduce the financing available.

That can require the investment group to raise more equity or reconsider the purchase price.

For investors, the question should not simply be:

How much debt can we get?

It should be:

How much debt can this property comfortably support?

The Sponsor Matters as Much as the Property

Lenders are also evaluating the people behind the investment.

Experience, liquidity, net worth, ownership history, and the sponsor's own capital can all influence the financing available.

Julie also emphasized that lenders distinguish between someone who has simply participated in a multifamily investment and someone who has actually carried responsibility for operating or financing the property.

For passive investors, this reinforces the importance of understanding the sponsor's actual track record and role in previous investments.

Existing Low-Rate Debt Can Create Opportunity

One feature investors may see more frequently is assumable debt.

Instead of replacing the property's existing loan, a buyer may be able to take over financing that was originated when interest rates were substantially lower.

That can improve cash flow and potentially make an acquisition more attractive.

But the interest rate is only part of the story.

Investors should also understand how much time remains on the loan, whether interest-only payments remain, what prepayment penalties exist, and what refinancing could look like when the loan matures.

What Multifamily Investors Should Pay Attention to in 2026

The current lending environment rewards discipline.

For investors evaluating a multifamily opportunity, pay attention to:

• How much leverage is being used

• Whether current cash flow comfortably supports the debt

• When the loan matures

• What happens when the property needs to refinance

• Whether the sponsor has meaningful experience and capital at risk

Financing should never be treated as a small detail buried in the offering.

It is one of the biggest factors influencing cash flow, risk, investor distributions, and ultimately the performance of the investment.

The Bottom Line

Multifamily investing in 2026 looks different than it did during the era of ultra-low interest rates.

That does not mean opportunities have disappeared.

It means investors need to evaluate them differently.

A strong multifamily investment should have more than an attractive property and projected return.

The property, sponsor, debt structure, and business plan should all work together.