That will be a determining factor for where it makes sense for you to purchase.Regarding waiting - bear in mind a lot of people were predicting rates in 2024 would be in 5% range or low 6s, which didn't turn out to be the case.

I would search for a property that has a low interest rate Fha or VA loan.

Renting to only Section 8 now is possibly the best course of action if the rent you are willing to sale is low enough.

. - This will allow low down payment and the 203(k) allows repairs to be financed into the purchase mortgage.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.

But I'm guessing maybe your credit is too low for that?  

If you have a low interest rate, consider a HELOC for value-add BRRRRs or flips. 

In the second half of the year, market by market, the supply will slow to near record lows, which will be a key theme in 2026.

Second, the insurance is $1.5k which seems to be low as well. 

Damon That's the rub with low income tenants.

In my state i have no such requirement on security deposits but i question the feasibility of doing this as well as how will anyone know as long as you have the means to pay the tenant their deposit when they move out. most banks charge for low balance accounts.