Bend Real Estate and High Interest Rates

[Nella DiBenedetto]

Hello! I am going back and forth with a deal I am currently in and need BP help! If anyone is familiar with the Bend, OR market please feel free to message me in my inbox so we can chat more. I found a deal in the Old Mill district. House was priced at $499k I low balled at $455k and they accepted it. Comps around it are in the $600-$700ks. It needs a little bit of work on the inside (new flooring and two small walls removed) and I eventually want to change the one car garage into an ADU for dual rental income. I have never bought when interest rates are this high, with a questionable housing market. My question is, if this is a good deal or if I should back out and hold off for now with the high rates? My mortgage without renovating the garage is $3300. If I want a renovation loan for the garage, my mortgage will be around $3900. My interest rate is 6.99%... Not going to lie, this one scares me a bit. Any insight helps! Thank you.