However, prices for a comparable 5-bedroom home in Washington are significantly higher, likely around $1.5M or more, which would mean taking on a new 30-year mortgage with 6+% interest rate and limiting new investment opportunities.2.

These figures are even higher than those that were used by unscrupulous local developers, master brokers and local real estate agents a few years ago to lure unsuspected foreign buyers.

@Jordyn Ohs Assuming your heloc is re-advanceable and the rate is higher than your mortgage, I would suggest you pay your HELOC down as quickly as possible with any cash flow from the properties.

Most 1-4 unit real estate investors are using DSCR loans right now for any buy and holds while flippers lean on higher leverage bridge/fix and flip loan options with higher interest rates.

This is why so many new investors are saying they are going to BRRRR properties, not knowing that, in many markets, it doesn't work right now with high prices, low inventory, and higher rates.

Some PM companies take on higher end stuff (think Cul-De-Sac neighborhoods) and some focus on the hood.

So now we cover utilities for both units and the new tenant pays a higher amount too on the back unit to cover all the utilities with a great profit.  

We have zip codes that have lower and and higher end areas within the same zip so not a good marker to use.Going along with that a lot of the neighborhoods are very street by street or change pretty quickly by block, so you have to be aware of that.

.- in this higher rate market, i find BRRRRs to be challenging because after a high LTV refinance the units have negative cash flow.  

In general, the higher valuation properties with views or close proximity to water have higher rates of returns.