Annual Rate Amount % increase in purchase price as compared to 5% - 30 year loan Amount % increase in purchase price as compared to 5% - 15 year loan 8.000% $ 146,320.00 -26.8% $ 165,499.00 -17.3% 7.500% $ 153,550.00 -23.2% $ 170,611.00 -14.7% 7.000% $ 161,376.00 -19.3% $ 175,961.00 -12.0% 6.500% $ 169,862.00 -15.1% $ 181,561.00 -9.2% 6.000% $ 179,074.00 -10.5% $ 187,424.00 -6.3% 5.500% $ 189,091.00 -5.5% $ 193,565.00 -3.2% 5.000% $ 200,000.00 0.0% $ 200,000.00 0.0% 4.500% $ 211,895.00 5.9% $ 206,746.00 3.4% 4.000% $ 224,885.00 12.4% $ 213,818.00 6.9% 3.750% $ 231,830.00 15.9% $ 217,483.00 8.7% 3.500% $ 239,095.00 19.5% $ 221,238.00 10.6% 3.375% $ 242,853.00 21.4% $ 223,149.00 11.6% 3.250% $ 246,697.00 23.3% $ 225,084.00 12.5% 3.125% $ 250,630.00 25.3% $ 227,041.00 13.5% 3.000% $ 254,655.00 27.3% $ 229,023.00 14.5% 0.000% $ 386,510.40 93.3% $ 284,686.00 42.3% 1: If interest rates decrease to 4% for a house, worth $200,000 when prevailing rates are at 5.00% for 30 years, that person can pay $224,885 for the same property (an increase of 12.4%) without an increase in the principal plus interest.

So investor need to measure supply and demand  and select good investment carefully .If your home losing value while MF cap rate decreasing ..:.

We decreased the time and complexity for our clients by forming a team of trusted third-party service providers.

Our market is super high, but I dont think it will tank anytime soon, probably just level off or small decrease.  

Once cracks turn up in the economy, look for:- an abrupt pivot in Fed talking points - rates will decrease precipitously- more free hand outs in the form of stimulus  (to buy votes)If you buy now (even at higher rates), you can always refinance later.

Our concerns are 1) uncertainty of liabilities in CT 2) decrease in re-sale value down the line 3) possible loss of income in Unit 5.Any thoughts, opinions are previous experience with non-conforming unit?

The primary target market for most of our flips is first time FHA home buyers, some of which will be forced to decrease the price point for their purchase because of higher interest rates. 

This tells me that multi-unit prices decreased by at least 10% during the past 9 months are are definitely not rising.So, here is a little math if anyone wants to show others how to do the math.10-units in Torrance California on Van Ness Avenue about 5 buildings south of Redondo Beach Blvd.Asking $2,750,000I would offer $2,650,000 and tell the broker I will not accept a counter offer, will not ask for discounts for repairs and it will be a done deal.Gross Income is $180,000 or $1500 per unit and can be increased very quickly or if you think it is better to do over 3 years to no less than $1650 and to a max of $2750, but you need to spend $300k for rehabbing.Personally, I am not interested in this property because my calculations show that if I raise the rents $40 per year for the next 10 years and after the rehabbing with principal paydown I would earn a whopping $515,000.

Decrease spending.

As a confirmation I looked up the history of recessions (History of Recessions)  The range of GDP decreases during recessions since WWII  ranges from -3% in 2001 to 4.3% in 2007-09 with the typical range being between 2.5 and 3.5%.