In the beginning of 2024 many people I talked to really wanted to buy out of state rental properties but the common fear was two fold….
- They wanted to wait until the rates dropped.
- They wanted to wait until the home prices declined.
Well unfortunately neither of those happened and in fact the opposite occurred.
It is currently December 2025 and out of all the five properties I purchased last year all have appreciated a ton and we have already raised the rent to cashflow even more.
I always say, “The best time to buy real estate is now.”
I hate to say I told you so, but…..Nana-Nana-Boo-Boo!!
For those that waited, the interest rates went up and so did the home prices.
So what does that mean now? Should you wait for lower rates before investing in real estate?
On one hand, when rates are low, you get lower mortgage payments…That is Awesome!
But with those lower mortgage rates comes a lot of baggage..kind of like an old clingy girlfriend.
You also get the following:
- Increased demand
- Lower Supply
- Higher Purchase Prices
- Bidding Wars
- More Competition
- Sellers that hold all the leverage
I personally LOVE the higher-rate environment. In the markets that I teach my investor students where to buy, we always cash flow at these higher rates.
That is huge because we can always refinance later, thus getting even more monthly cashflow.
“Marry the house and date the rate.”
When rates are high it is so much easier to find good deals and sellers are willing to negotiate lower prices.
If you don’t want me nagging at you in the beginning of next year, saying I told you so again, then reach out and let me help you navigate buying out of state properties that cash flow.
Crush Real Estate Investing,
Brian Waters Real Estate Investor/Mentor
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