The issue is that rents won't continue to rise as fast as housing prices, so you have to be sure to align your strategy to your goals.

Even food and drinking places, which suffered the worst during the pandemic, saw a 6.9% rise.

I don't foresee interest rates rising over the next couple of years, but people have taken out fixed interest rates for 20-30 year terms.

In regards to your second question on whether it matters if you pay top dollar in a 2021 market, it does matter quite a bit if you are planning to sell or refinance the property in the future if prices were to become stagnant or decrease once supply goes back up and/or interest rates rise quite a bit, but it shouldn't matter so much if you plan on keeping it for the long haul. 

I mean if the stock goes down you now have to come up with cash to clear your loans or your eroding your equity that is very nice right now.To me personally Safe and secure high quality assets are the name of the game.. you bought at the perfect time rode the rising tides raises all boats market.   

My biggest concern is the February rise in interest rates.

As the market was rising from 2010 - 2018 even bad flippers with no talent were making big money.

Much easier for them to rise and fall quicker compared to the more resilient single family or rowhouse sector. 

A 4.4 percent annual increase in household income helped to mitigate some of the impact of rising rates on affordability.

@Nicholas Glatter base it off of rent because as inflation drives rent up, the costs for your CapEx and other expenses will also rise over time.