.- If interest rates remain high, this is further upward pressure on rents in the near-term, as the alternative to renting - buying a home with a mortgage, is expensive - this should increase demand for rentals. - Rents are also a function of supply - 2024 saw the most new construction of multifamily units in American history (nearly 575,000 estimated 2024 deliveries of new multifamily inventory), and 2025, while not a record setting year, will see deliveries top 500,000 again - a huge supply increase. 

Whether we agree with these items or not, the following are inflationary government policies: stimulus, student debt relief, tariffs, increased child tax credits, limited immigration, and big government deficit spending.

By accelerating your depreciation schedules, you reduce your taxable income which in turn increases your operating cash flow.

In this era of increased rates, obtaining properties that will produce a good return are harder to find and often involve quite a bit of work.  

From what I’ve read in The Economist, demand for “off-the-beaten-path” destinations has increased post-pandemic, as travelers seek quieter, less crowded areas.In my backyard, investors and homeowners alike are increasingly drawn to areas like Gilbert and Chandler due to their exceptional growth potential and quality of life.

Ideally a HELOC is used for less then a  year project where you can refi or sell to pay back the HELOC. 5 years is a long time, things can happen and if you reduce the cashflow on both properties you'll be increasing the risk and having thinner margins.

And during inflationary times rental rates increase.

For the next billing cycle they increased my charges by $500 and did not notify me of the upcoming charge.

I'll focus on maintaining the property and optimizing rent increases to ensure consistent returns over the years.

While borrowing for a down payment is risky, increasing your savings will lower your interest rate.