Purchasing first rental property

[Trevon Burton]

Hello BP community, 

I am a new investor who is in the process of buying my first rental property. I have gotten an pre approval letter from the bank for a mortgage loan, seeing that the interest rates are high right now, it's looking like my room for profit is limited. Is now a good time to go through with this or take the capital I have and try to invest into another real estate deal? I am located in GA!

Just a quick background on myself- I started an Airbnb but didn’t own the property, therefore I didn’t have much valuable insight as to what investment options I could make, so I would love some input from you experienced investors on the right moves to make. 

Thanks in advance!

[Denise Supplee]

Hi @Trevon Burton and welcome!! It’s key to focus on cash flow and returns rather than just getting into a property, since interest rates are so high it is very important to carefully run the numbers, including mortgage, taxes, insurance, and maintenance, versus expected rent to see if the investment is viable. If the profit margin is too tight, it may make sense to wait for a better deal or continue building capital until the numbers work more comfortably.