Michael, that's a scary Forum Title at the beginning of a downturn.Australia, China, Canada, California, New York have already droppedand the big banks have recently laid of 100s of high paying mortgage jobs.With interest rates over 5% for most average SFH buyers, are you leveragedfixed at 3-4%?

Rates should decrease, but the issue with that is that when rates drop, people can pay more.

For example, cleaning fees will now need to be included in the nightly rate shown to travelers.

While it is cheap money (interest rate is typically set at prime + 1%) the loan must be paid back using amortized payment over a period of 5 years.

I have a rate of 3.75% Current PITI is 2180 and other expenses monthly are roughly $200.

Areas like rural small town Bisbee multiunits are dirt cheap, cash flowing, but factor in the area of middle of no where and not up coming.

If I apply the 1% rule, the current rental value is below by about $500, however, cap rate is calculated at 6% and CoC at 3%.

I recommend spending 30 minutes every month watching the rent rates in your market so you always have an idea of what yours would rent for should you have a surprise vacancy. 

Why would anyone want a traditional mortgage or DSCR with the rates where they are?

Nashvilles market is insane and the BRRRR method just does not work with rates.