Multifamily in this market ?

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Odds are if you wait until more competition seeps in that prices will get higher. Get in where you can now and yes, you can always refinance.

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Hey Karan, expecting rates to be 6% in 6 months is a bit aggressive, especially if you're considering commercial/DSCR loans. Those are typically slightly higher than traditional mortgages.Still, to your point, if you can get a good deal and refi towards the end of next year, you'll do great. The challenge we'll face when rates go down is that property values will also inch higher.Good news is, anyone who's listing a property now through winter is more motivated to sell, and that might be because they are either retiring from the REI race or the more likely scenario is that they purchased 3-5 years ago when rates were dirt cheap and now have to refi into something 2-3% higher - particularly for commercial loans.Good luck!-Mel

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Im no expert by far . my thoughts would be if the rate is fixed and the property cash flows now then its only upside from there with rates, refi, value adds , rent roll increases ect. if there IS no cash flow at the current rate there are the down side to consider repairs, bad renter issues, ect ect . I look at deals for what they are today. if they cash flow today i feel i can maintain or better cash flow. just my rookie advice

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@Karan More I'd also say it's unlikely we see rates drop to 6% within 6 months or even a year, however if you find the right deal and the seller is actually motivated you shouldn't have any problem negotiating enough closing costs to use for a 2-1 Rate buy down. If the rate is 8% then that means you'd be at 6% for year 1, 7% for year 2, and the full 8% every year after, however that gives a 2 year window for rates to come down and you can refinance. Don't put yourself in a situation where you won't be able to make the payments if you can't refi within a year or even two, the deal must make sense long term incase things don't go according to plan.

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Don't wait on rates. Find a deal that works with rates as they are and if you get a chance to lower the rate later, bonus. They won't move that much in the next year anyway and if they did, you would have more competition for the same deals, so you likely end up paying more for the property. Also consider that a refi isn't free and if you get a commercial loan there is likely to be a "seasoning period".

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Thanks @Devin Petersonand @Mel F.. This would be my 2nd property. Planning for househack using HELOC of my 1st. So thinking if it’s ok now or later

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Deciding whether to proceed with buying a multifamily property now or wait hinges on several key factors. Currently facing an 8% APR, your consideration of future interest rates dropping to 6% in six months adds an element of unpredictability. The decision should factor in the impact of interest rate changes on cash flow, influenced by market conditions, including property inventory, competition, and anticipated price fluctuations. Financial considerations like the down payment, refinancing costs, and the urgency to generate positive cash flow also play a role. Opting to buy now secures the property promptly, enabling earlier rental income but entails higher monthly mortgage payments. Waiting for 2-3 months carries the potential for a lower interest rate, reducing monthly payments, and offers more time for property search, but introduces the risk of losing the desired property and delays in generating rental income.

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You can always refinance. Don't give up on a deal because of an interest rate. Marry the house, date the rate. BUY IT

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Depends on if you're focused on DSCR or conventional. Right now, my lowest rate DSCR lender for 5+ is around 7.3% for max leverage, 1 pt. With rates expected to continue going down, I do think we're more than 6 months away from the 6's, unless we have a couple more weeks like the last 2 weeks for rates.But based on a normal pace, lets embrace those low to mid 7's. We've come along way from 8.5% lol.

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@Karan MoreWe're seeing some of the best small multifamily deals we've seen in Reno, NV in many years. As interest rates push down, prices push up. There are a lot of buyers on the sidelines that are waiting, exactly like you are. If inventory stays limited, there will likely be a frenzy. You can always refinance, but just make sure you can make the payments.