You would do better in 30-day t-bills (right now ;-)The hopes an investor might have (if you purchased a property like this) are: 1) inflation to drive rents up, 2) inflation to drive property appreciation, and 3) mortgage rates to drop to refi at a lower rate in a few years.A lot depends on what someone thinks about the longer-term prospects of neighborhood they're investing in.

Anyone that has experience feel free to drop me a line.

It really is crazy and with rates dropping again to under 3.75% for FHA I'm not sure what will happen.

The property value has dropped more than 30% in the last several years?

Yes, your standard mortgage rates are dropping, but most of your true commercial lending options are always going to be slow to react so I'm still seeing commercial rates higher than that.Sent over a DM, but would love to talk through some options if you are interested.Good luck!

Plus interest rates for the rental loans are now starting at 5.3%, and I expect those to drop more in the next 6 months.   

Even if you buy a house that is cash flowing a few hundred dollars in today's high interest rate market, I would strongly recommend to purchase and reviewing deal flow because if you wait for rates to drop in a year or two (which they should be in the 4-5s), then you're going to have an absolute cash flow.

Michael, I've been reading about hot tubs and "hot" is in the name, but they can be cold water tubs too, so the temperature can be set as the season varies.  

Listed it Feb 2014 , 217 days on the market,  multiple price drops, it didnt sell, then they withdrew it after seven month.

I do like 2/1 buydowns in declining interest rate environments like we are in today, as it buys you time to wait for interest rates to drop.