Thoughts on current interest rates

[Dane Moreton]

I'm looking to get into my first property as an investor; specifically, a SFH rental. I have $40K for a downpayment, but, as this is an investment property, I am looking at 7.125% APR with 25% down, or 7.5% with 15% down, and 2 points. I am in TX, and the market I am looking to buy in, the median home value has decreased by 3%.

The strategy right now is to build equity and cash flow income (on this, then other properties) until I can get a 25% downpayment for a triplex or fourplex. 

My question is, with these current interest rates, does it make more sense to wait until they come down (when prices may likely rise becuase of it) or jump in on a good deal on a home, with the possibility of refinincing in 2 years when rates will most likely be back down?

Of course, these are assumptions here, but wondering what the experienced investor would propose in this situation, with the current funds in the current market, with the current strategy.

TIA!

[Tristan Romero]

Hi Dane,

As it seems you already know we don't know where rates are going to be or prices for that matter.Just as @Ned Carey said interest rates aren't actually high relatively speaking for the past 30 years. In any market there are deals to buy you just have to find one that fits in your buy box. Time in the market is better than trying to time the market. That doesn't mean buy any deal but don't be afraid if you find one that fits your buy box. I recently bought my house with a 6.44% rate but I don't care because I own a house now. If you decide to wait you interest rates may go up or stay the same. Stick with your plan of action and move on it! 

Best of luck to you!!! Feel free to reach out anytime.