Give some thought to the number of units you have, and where you are in your REI process (sounds like having 5 properties is what you anticipate having by end of year two).

If you anticipate a big change in interest rates, what factors do you believe will drive this change?

What challenges are you anticipating, and what opportunities do you see arising from these changes?

I would not anticipate much turnover so could be good cash flow over the long run, the question is the long-term appreciation… depends on your strategy and weather you’d be managing themselves or relying on unknown local property manager, contractors, etc.

If they anticipate increases to the rates, you need to factor that into the decision. 

Each of the scenarios, I anticipate can be a headache for bookkeeping and have pros and cons. 

Also, everyone is anticipating much lower rates over the next 12-18months, so if you purchase today you will most likely refinance to a lower rate in the coming few years.With Real Estate it's important to remember not only that it is a long term investment, but that there are many ways to make money on the asset. 

Competent sponsor, no loan maturity for at least 5 years, not bridge debt with a wide spread, property generally stable, and capital call anticipates several years of liquidity—good outcome more likely than not.8.

So in general, low initial cash flow markets have higher anticipated rent growth.

I do anticipate more refinances this coming year since rates are looking favorable and so many balloon notes that have been on extension after extension will eventually need to be paid off.