This friend and I have done 2–3 deals together, and there’s never been a payment dispute or even a hint of cutting him out of something.

So, I don't think frozen pipes were a concern.

The other thing that concerns me is you mention that you are both high income earners but that you are “trying” to save an emergency fund.

I'm more concerned on if it's going to be a good deal or not.

Tom so you wouldn't be as concerned about that element?

The concern about interest rates affecting the deal is valid.

Those things won't matter if your business crushes it. i feel like it would matter when those things add up and start tearing at ur profit If banking fees cut into your profit, your profit isn't big enough.

I believe that the Federal Reserve is going to cut rates by 25-50 bps at it's September meeting (no emergency cut), but that 30-year fixed rate mortgage rates will rise to upper 6s low 7s around the same time, and Commercial borrowing rates, including for multifamily, will increase as well. 

However, a lot of concerns can be mitigated with looking at their past rental behavior in a lot of different settings.

If you’re using leverage, be extra cautious with your underwriting to ensure the deal still works at today’s rates.Economic Uncertainty: Inflation, potential recessions, or shifts in demand could affect rents, vacancy rates, and property values in some markets.Increased Operating Costs: Rising insurance premiums, property taxes, and maintenance costs can cut into profit margins, particularly for buy-and-hold investments.Regulatory Risks: Some areas are increasing restrictions on landlords, particularly short-term rentals.