2) I would buy in this environment, but be absolutely more cautious.

But I am open to ideas.I see this environment as quite challenging to find a deal that will cash flow reasonably well in my area due to HCOL and interest rates (even as somebody with some resources). 

However, if you wrote mostly 4s and 5s, you may want to consider your options.A Final Note About Selling and ExchangingIn our new regulatory environment, a rental-housing owner in Oregon can run afoul of the rules even when trying to sell.

Even if the Fed lowers rates by a full 100 bps over the next 12 months, to 4.25%, the 10-year, in a normalized environment, should be at 5.5% (+125bps over the FFR).

One mistake or big unexpected expense could ruin you if you only have one or two rentals that are not cash flowing.That said, especially in the current environment, if you are coming from a very strong financial position then there may be times where it may fit your goals to invest in a highly appreciating area with no or negative cash flow.

many houses in the midwest, for example, are very old and need major rehabs.i personally think out of state investing is more difficult than advertised, and much more difficult in the current investing environment, with: prices high; interest rates high; tremendous demand for inventory, by both investors and retail buyers; and good PMs, contractors, etc. booked up.here's a really thoughtful thread with the experience of another CA investor and lots of different responses:https://www.biggerpockets.com/forums/12/topics/1215726-break...and here are some threads about how it can very easily go wrong:https://www.biggerpockets.com/forums/48/topics/1159104-overl...https://www.biggerpockets.com/forums/963/topics/1195280-expe...https://www.biggerpockets.com/forums/48/topics/1160450-run-i...https://www.biggerpockets.com/forums/48/topics/1137397-balti...finally, you also said you "don't have a lot of money to start with." 

Its still uncertain as to how well BAM will handle the current environment with higher interest rates and slowdown in rent growth. 

This likely reflects reduced demand for T-Bills, heightened inflation expectations, and increased Treasury supply, all contributing to higher mortgage rates and a tougher environment for buyers.There’s likely more at play here, but I agree it’d be great to see mortgage rates head in the other direction sooner rather than later.

“Notes” are such a BIG field, that I’ve found it more efficient, effective and profitable to target specific “arena” of notes at different times in different economic environments.  

In response to Paulette, I work both resorts and Eagle Rock has far more amenities inclusive than the resorts in the Poconos.