Buying Investment Property in High Rate Environment

[Chris Schmitt]

I have been looking at purchasing a turnkey condo in the Orlando area as a long term rental.  I found a unit with a reliable existing tenant who wants to remain at around 100 per month below market value rent which for me would be worth it for the stability.  The unit is listed for about market value.   I can come in with a large down payment or even pay cash, though I would prefer not to.  My question is this - with rates spiking and deals in general grinding to a halt, how much additional leverage is there for buyers? I haven’t seen prices drop drastically but they seem to be “softening.”  What percentage under asking is fair in this market?  Or just wait and keep my “powder dry” as prices dip over the next few months.