For the third time this week, I had the exact same conversation with one of you about cashflow and interest rates.

It usually starts with me asking: “…so why haven’t you purchased more rentals in the past year or two? You obviously want to.”
And the answer is always: “Because of the high interest rate.”

Since this has been a very common conversation for the past 18+ months, I thought I’d put things in perspective so you can make a more educated decision about buying more rentals soon (or not).

Yes, I’m biased. But (a) I’m buying these days, and (b) even if I am biased, it’s your wealth we’re talking about, not mine.

First. A Simple Exercise

Say you’re considering buying a rental for $300k, putting 30% down, with a $210k mortgage.
At today’s ~6.5% rate, the payment is about $1,320.

If you got 5% instead, the payment would be about $1,120.
That’s a ~$200/month difference, or $2,400/year. Keep that number in mind.

(By the way, you could always pay ~3.5 points — in this example ~$7,200 — to buy down the rate.)

What’s Happening in the Market

Since late 2024 we’ve been seeing stagnation in many local markets, with some (like Austin) even going through sharper corrections. Sellers aren’t desperate — many have very low mortgage rates and lots of equity, and they don’t want to “lose” by selling low only to buy another home with a higher monthly payment.

But zooming out: we still have a housing shortage that started back after the 2008 crash. From my 20+ years in this business, I’ve found the best times to buy are not when everyone else is rushing in, but when there’s uncertainty — like now.

And consumer uncertainty doesn’t last forever.

1. People eventually get used to the “new normal” rates and stop comparing everything to the unicorn rates of 2021 (which were a once-in-a-century event).

2. Many have been sitting on the sidelines waiting for rates to drop. When rates do dip below 6%, can you imagine how many buyers will suddenly flood back in? Do you think that will be the time to find a bargain?

What This Means for You

In my opinion, this window of uncertainty will close, and the bargains we’re seeing today will go away. You’ll still have rentals to buy, but instead of $320k, they’ll cost you $350k.

You’re not marrying your rate. You can refinance. If you buy today at 6.5% and in 3 years refinance to 5.5%, that “extra” cost is about $7,200 total. If you bought now at $25k below market value, would that $25k of equity be worth the $7,200 “cost”?

We’re in a buyer’s market. That should tell you something about what you should be doing.

Next time you get one of our property emails and don’t like the numbers, ask yourself: What offer price would work for me? Let’s discuss, or even submit an offer — sellers are motivated more than you think.

A Quick Story

One of our Simply Do It clients just bought a 3/2, 1600 sqft, 2004-built home in an excellent suburb with great schools.

• Listed end of April 2025 at $285k.

• Dropped in May to $275k.

• Our client offered $255k in August — seller accepted.

I thought the seller would counter at $260–$265k. I was wrong.

Inspection came back very clean, with just $3,000 in minor repairs. Seller gave a credit, plus agreed to a few fixes and a 1-year home warranty ($1,250).

So basically, the client bought a $280k move-in-ready house for ~$250k. They’ll do a few cosmetic updates to make it even more attractive to tenants, while it’s being listed for lease.

This is what’s possible right now. And I’m honestly excited for them.

— Dani

Simply Do It, founded by Dani Beit-Or, has helped investors purchase and manage thousands of single-family rentals nationwide. The focus is on practical strategies, vetted teams on the ground, and step-by-step support for building wealth through real estate.