These areas might have higher property prices, but they can offer premium rental rates and higher occupancy.

What I'm hoping is to value add and refinance a bit later if/when rates go down.

If you can get your direct deposit moved against your heloc right away, and then you do not have to pay bills instantly, you are leaving your idol funds offsetting a 7.5-8.5% interest rate.

And the values like all rentals will just track the rental rates and what an investor is willing to pay for a return.

Who cares about lifetime interest costs, except to the extent you can easily lower them (refinance to a lower interest rate) to increase your cashflow.

(Maybe the seller has a great interest rate, but you would have to pay twice that amount which wouldn't be profitable.)11) Crime in the neighborhood. 12) High turnover in tenants (raising your expenses.)

Interest rates will not be low.

Brandon Turner's Rental Property Investing book is an excellent primer to understanding the happy path for purchasing a property - however in this market it really comes down to having bulletproof assumptions on rents/taxes/R&M/etc. as with rates as high as they are/inventory as low as it is, there is less cushion in your returns if you analyze properties with bad assumptions.

You have to adjust your expectations to match current reality, which includes higher mortgage rates, higher prices, more expensive taxes and insurance, more competition, etc.

What excuses have you used to go to drop by their place?