Interest rate woes - advice needed please

[Bernadette Andrews]

I'm doing a 1031 exchange and just went under contract for the purchase of two villas which are under construction in Kingsland, GA. They should rent for $2100-$2200 and just a few months ago I would've had pretty good cash flow. Now I'm so disgusted by the interest rates and concerned that they could increase even more by the time the properties are completed in November so I'm considering an extended rate lock with a float down option. I wish I could sit on the sidelines but paying the IRS is the last resort.

Yesterday, I received a quote for a 6.625% rate plus closing costs of almost $13K for each property due to extra cost for the 150 day rate lock.  This is for a 30 yr fixed conventional with 25% down. Today she texted, " Rates dipped slightly today to 6.5%, and the Origination fee decreased from $5,831 to $4,900." Please help me determine whether I need to move forward now or shop around for better financing options? Should I pay almost $8K over the standard 3% closing cost to lock the rate or take my changes and buydown later? Thank you so much for the input on a tough decision.