Long-term tenant that always pays on time.

How would I analyze a deal in a market where the rents are capitulating and is unsure how much or how long it will continue to do so?

Most lenders do not like these lower property values because they are too risky of an asset class, little return in interest and fees, and long term financing will be an issue as well.

Just depends on your long term goals. 

My first post on BP, I've been a lurker for a long time.I sold my e-commerce company last year and have been doing some real-estate investing, I've bought and fixed up several personal homes over the years and have always wanted to get into real-estate investing.I live in CA, and I bought my first investment property in Temple Texas at the beginning of the year. 

So, as long as you have at least 5% down AND the second lien meets these requirements Fannie Mae second mortgage requirements  you should be able to do what you are looking to do. 

This can potentially enhance long-term wealth building.Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.Cons:Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.Either one is a valid option, but overall it depends what your financial goals and restrictions are.

If long term holds aren't working right now because of high interest rates, maybe look into mid-term or short-term rentals.If mid-term or short-term rentals don't work for a property or market, consider simple fix and flips.If entry prices for simple fix and flips are too high, maybe look for major renovations. 

Get with a good local agent who understands the submarkets, and buy for the long term.

We are not new to real estate as we are flippers and rental property owners.