It is hard to win with 3.5 down in competitive markets as well right now.

Competition is high also so I wouldn’t touch it if I was out of state.

These buyers benefitted from lower monthly payments and avoided the intense competition seen in subsequent years.As inflation picked up, partly due to increased government spending and monetary policies, interest rates began to rise sharply, reaching around 7.5% to 8% today.

Keep an eye on your competition and see what rents quickly and what doesn't.

Baylor Bubble has a lot of competitive buyers that generally pay cash.

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.

If there is a down turn and vacancies increase you will still be able to get yours rented out as yours will look nicer than the competition.

Isn't he in effect training up his competition and potentially eating up into his own future revenues? 

It is a more competitive market than Findlay

I've priced the rental at $4100 per month, which I believe to be competitive for the area.