Deal or no deal for high priced property with high rates and

[Rufaro Chirewa]

Hi everyone, 

I am trying to buy a property that I can rent out. Interest rates have shot up, and we bid $50k above the asking price, because of how competitive the market is. I am now unsure on whether to continue and buy this house that has now a high-interest rate, and is overpriced. The mortgage would be around $1,800 to $2,000. Before the high rates, it was $300 less. This leaves my cash flow at $100 if I am lucky! 

I am thinking of backing out, and restarting the property hunt, or taking that leap, and hope rentals will go up, or that I can make some equity in the next two years and refinance or sell.

Would love your opinions. 

[Joe Villeneuve]

The answer is NO.  The biggest mistake you made on this property is you lost sight of what is important when investing in RE.  The "deal", not the property.  Once you said, "...we bid $50k above the asking price, because of how competitive the market is...",...you lost.  You are NOT a collector of properties, you are a collector of deals.  It is NEVER important, and should NEVER be a goal, to bid based on what it takes to get a property.  Bid ONLY on what it takes to get a deal.  If you lose the property, so what.  On to the next one.