Does buying a Rental Property makes sense in this high Interest rate market?

[Saurabh Kukreja]

I currently own one out-of-state rental property and am planning to acquire another. However, the high-interest rates are significantly affecting my operational costs. A neighboring property, similar to my current rental property, is now on the market at the same price I paid two years ago, with comparable rent. Unfortunately, the cash-on-cash return isn't the same due to the interest rates.

Should I proceed with the purchase now, or wait for interest rates to decrease before re-entering the market?

What strategies are others using when looking at MLS listings at this time?

[Travis Biziorek]

People have been waiting for interest rates to come down for 18+ months now.

The reality is it will likely take longer than you expect to happen. And, as it does, there's a lot of demand on the sidelines ready to buy.

This will likely push prices higher, cancelling out any benefit you'd see with lower rates.

If the numbers don't work today you either need to change your strategy or look at a different market. Doing nothing and expecting the market to figure things out for you generally doesn't work out.