Stop Crying About Interest Rates — Here's What Actually Builds Wealth in Real Estate

[Kyle Reedstrom]

Hello.  It's me.  I've been wondering if after all this time you'd like to....here for another Hot-Take-Tuesday post by Kyle from Fargo 😎

Let’s just say it — too many people are paralyzed by interest rates.  I can't go more than 24 hours without talking about the dang rates.   

Are people really sitting on the sidelines, clutching their pearls every time the Fed sneezes, waiting for some magical "perfect rate" to come save them!?   Meanwhile, real investors — the ones actually building wealth — are out here buying deals, locking in payments, and riding appreciation all the way to the bank.

If you're still obsessing over rates, it's time for a wake-up call. Here's why payment and appreciation leave interest rates in the dust:

🔥 1. Cash Flow Pays the Bills. Interest Rates Don't.

Nobody ever retired because they bragged about getting a 4% rate instead of 6.5%. They retired because the rent covered the payment and left money in their pocket. Cash flow is what keeps the lights on, the business running, and your stress level low.   If the payment works and you're cash flowing, the rate is just noise.  

🔥 2. You Can Refinance a Crappy Rate — You Can’t Refinance a Missed Opportunity.

Rates go up. Rates go down. Big whoop. You know what doesn’t change? The price you paid. Lock in a killer property with real upside, and when rates drop (because they always do), refinance and boost cash flow.
Wait around hoping for some fairytale rate? Cool. Someone else will buy that property, ride the appreciation wave, and you’ll be the one paying them rent.   Oh and don't come complaining when interest rates DO pop down and the whole market goes into a frenzy again and now every property you want has 4 offers day 1.   Remember that?   Makes these homes sitting on market for 24 days with 2 price drops seem pretty appetizing eh?

🔥 3. Appreciation Is the Ultimate Cheat Code.

Want to know how people wake up with six figures in equity? It’s not because they sat around rate-watching.
It's because they bought in markets that go up over time. While you're crying over a percentage point, they’re stacking $100K in appreciation without lifting a finger. You can’t out-save or out-hustle a good appreciation curve.  

Perfect example is my wife.  She bought a twinhome in Fargo in 2017 for $184K.    Today's it's up to $265K.   If interest rates would have paralyzed her we'd have $100K missing on our net worth statement.   And don't tell me you wish you would have bought back then too....Because when I'm writing posts on BP in 2030....I'll be talking about the low hanging fruit that was available during the 2025 market. 

🔥 4. Rents Go Up. Your Payment Stays the Same. You Win.

I remember back in 2015 when I started in Real estate and I saw all these "old-school" investors buying single family houses for $210K.  And I know the rents were only $1200/mo!?  What are they doing!?  That's a horrible investment right!?   Well, fast forward 4.5 years and rents went up to $1850/mo.  Now they are at $2200/mo for the same house.   Who's the dumby now?  Lock in your payment today. Rents climb tomorrow. Boom. Profit.
This is the long game people keep missing. Yeah, today’s rate might sting a little. But five years from now, when your payment is locked and rents are up 30%, you’ll be laughing all the way to the beach.

🔥 5. Sitting on the Sidelines Is the Most Expensive Hobby.

While you’re busy "waiting for rates to come down," property values are climbing. Rents are climbing. Equity is growing... just not in your name. Every day you wait is a day you lose real, tangible money.  Fargo's average historical appreciation is 2.76%.   Even through 2008-2009 market.  2.7% on a $300K investment....you do the math as 5 years goes by.    And to think you didn't buy that investment you liked because the payment changed by $130/mo because the interest rates were too high.  
Spoiler alert: There’s never a perfect time. Winners play the hand they're dealt.

💣 Final Thought:

If you're serious about real estate wealth, stop treating interest rates like the boss level. They’re just background noise. Focus on what matters:
✅ Solid payment.
✅ Strong cash flow.
✅ Killer appreciation potential.

That’s the real flex.

Cheers 🚀

Kyle from Fargo