After two months of slight (0.1% MoM) decreases, CoreLogic’s national Home Price Index jumped 0.7% MoM in Feb, way above their expectations.

However, the issue I have is that I only have 1 year of solid income from the business, the year prior to that is inadequate, and I know most mortgage companies require 2 years of income to qualify.

Margin spread may decrease and I could see rates around 5% conventional and 6% investment in 2023 but unlikely lower then that.

The cost is your decreased cash flow of $200 per month.

Do you think it's wise to hypothetically save up a large down payment while also waiting for interest rates to decrease in order to make the move into a house-hack?

If you use one of several ways to convert the cards to cash you could pay down personal debt and drastically decrease your DTI.

Increased the rents, decreased expenses.

Relying solely on a few months reserves seems very inadequate to me.

We were asking our mortgage broker if interest rates ever decrease for these loans.

Overall, if you think rates will decrease at some point over the next 5 years that would lean you towards buying this deal knowing that you can either refinance at a lower rate during the time period or sell at a lower cap rate.