This rise in rates is partly aimed at controlling inflation but has also made borrowing more expensive, reducing purchasing power.Consequently, money is effectively worth less due to inflation, meaning more is needed to purchase the same goods and services as before.

We would like to obtain rental properties to generate passive income and hold via LLC (to reduce legal liability).

On the other hand, renting out the entire home can simplify the management process and reduce the potential for conflicts between tenants sharing common spaces. 

Careful tenant screening, competitive rents, and proper property management can help reduce vacancy periods.

curbio also mentioned if the property doesn't sell , the selling price will be reduced by %2 every month. 

To compound things the unit with the STR permit is obtaining reduced revenue.  

Also many HMls will reduce the LTV to 75% of the pp and 100% of the rehab if this is your first time flipping. 

In the second consultation where I was quoted a fee of $24,750, I was told because the team is so confident that they can reduce my taxes several times over, they are willing to offer me a 100% satisfaction guarantee. 

They can reduce utility costs and make the property more attractive to eco-conscious tenants.4.

Less Competition - High-interest rates and market uncertainty may deter some flippers, reducing competition for distressed propertiesMarket Demand - In some areas, there remains strong demand for renovated, move-in-ready homes.Price Negotiation - Sellers of distressed properties may be more willing to negotiate in a high-interest rate environment.Cons:High Carrying Costs - High-interest rates increase the cost of borrowing, which raises your holding costs (interest payments, taxes, insurance, utilities).Market Volatility - Real estate markets can be unpredictable, and high-interest rates may lead to slower home sales and declining prices in some areas.Renovation Risks - Unexpected renovation costs and delays are common risks in any market, and high-interest rates exacerbate the financial impact of these issues.Financing Challenges - Securing financing for both the purchase and renovation can be more difficult and expensive in a high-interest rate environment.Mitigation Strategies:Thorough Market ResearchAccurate BudgetingEfficient Project ManagementFlexible FinancingExit StrategyFixing and flipping properties in today's market can still be profitable if approached with caution and thorough preparation.