Lexington, KY - Sellers Market but interest rates loom

[Aaron Vargas]

My wife and I are looking to make our first investment purchase in Lexington, KY. Lexington is actually a little bit of a hidden gem. Home to the University of Kentucky and lots of growth in the past five years. We have been looking at a few duplex properties, which are going quickly in the area.

Here is the issue we are facing... Prices in Lexington seem to be slightly inflated. Since real estate is going so quickly, lots of sellers are getting their listing prices or close to it even though lots of properties are over priced. My wife and I obviously do not want to overpay for a property, but at the same time, interest rates are on the rise. 

Here's our question... Do we lessen our standards on purchase price (be willing to pay more) to avoid waiting too long and getting stuck with a higher interest rate?

I know that's tough to answer without the specifics of an investment property, but any guidance would be much appreciated, especially since this is our first purchase. 

[Ryan Camenisch]

Aaron, congrats on being preapproved. From there the next step is really deciding what your long term goals are regarding real estate and then finding a deal that makes sense and moves you toward those goals. Building wealth through real estate takes time and persistence, so don’t let yourself suffer the “paralysis by analysis” that many people fall prey to. Jumping in on your first deal is usually the toughest part! Let me know if I can help you somehow.