Investment Strategy with Today's Interest Rates

[AJ P.]

Hey everyone, as I'm sure you all know, it's hard to find properties that cash flow (or really even come close to 0) with the traditional 20% down and 7% interest rate that we currently have. The only way real estate investing seems to make sense in my mind now is to use as little debt as possible and then hope in a couple years that rates are down and then you can refinance to get your equity back for additional properties. I'm very intrigued by a property that is in a great neighborhood and will appreciate very strongly, but using any sort of financing on it the cash flow return is deep in the negatives for a couple years even though the ask price looks like a good deal compared to other houses around. Does anyone have any advice or thoughts on what I've shared? Not sure how accurate my mindset is and if I need to be thinking about things differently here. Thank you!

[Marc Greger]

Quote from @Eric Gerakos:

Instead of fighting the high interest rates as a borrower, take advantage of them by being a lender. Conservative LTV first trust deeds are currently paying over 9% and generate good cash flow when buying doesn't make sense.

Yes that´s another wonderful alternative, I invest in notes as well, got no tenants & no toilets and with those interest rates a return, where I don´t need to buy real estate for cashflow. Sure if you need to use opm or buy for tax reasons or believe in appreciation, that´s another story, that´s why we always have to ask ourselves why buy that real estate.