I have a very good interest rate and will most likely take out a HELOC out to finance a rehab rental.

Now receiving an infinite return rate.

Just as you said Arsen, that meant a higher mortgage payment, and when rent rates dropped I was not payment $3,500 out of pocket every month to cover the difference between mortgage payment and rental payments.  

I will say though we kind of built the right product for this market cycle.. big single levels with 3 car garages catering to the empty nester and down sizer we get buyers coming in off their small oregon hobby farm .. our first time move up buyer did slow a ton but we have sold to families as well just not like it was pre interest rate spike.. our other folks are either paying cash or borrowing very little so interest rates are not affecting them.

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Refinanced during the pandemic, and was able to drop the rate to <4%.

@Roger MoralesI live in St Augustine, and the Jax market can be challenging, with insurance costs, the low cap rates, and the assets that are older.There are so many Southeast markets that would be favorable to invest in.

Issue is rates higher and terms are worse. 

-Would the Fed actually RAISE rates?

I have been doing work to improve the side that I am living in, including finishing the walk-out basement that adds another 2 BR and 1 Bath. 1-1 rate buy-down gives me a 24 month period refinance at either a lower rate, or at a higher value (forced appreciation from improvements).