Purchasing first rental property

Investor · GA · Member since 2025 · 3 posts · 13 votes

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!

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Denise SuppleeBusiness Member

Realtor · Willow Grove, PA · Member since 2017 · 974 posts · 641 votes

10mo

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.

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Al Bazzy
Real Estate Agent · Livonia, MI · Member since 2016 · 32 posts · 10 votes
10mo
Hi Trevon! High interest rates can definitely make the numbers tighter, but it’s still possible to find deals that cash flow well if you focus on strong rental markets. For someone new, turnkey properties can be a good way to get started, already renovated, in solid neighborhoods, and can generate steady income from the start. We’ve had several out-of-state investors come back to purchase multiple properties because the returns are strong and reliable. If you’d like, feel free to reach out and I can share more about how turnkey investments work in markets like Detroit.
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Joey BanasihanPro Member
Investor · Boise, ID · Member since 2019 · 233 posts · 188 votes
10mo
Hey @Trevon Burton, rates are high, sure — but waiting for perfect conditions is how people get stuck for years. Taking reasonable action with reasonable risk has a way better ROI than trying to time the market.

I’ve house hacked for the last several years. On paper, not every deal looked amazing. Most of them were not penciled out to cash flow for a few years. But the equity I built during the “not great” years ended up funding the next properties & renovations, now I have about $350k in equity at my disposal because I took reasonable risk and action. Folks had the similar concerns in 2018/19 waiting for a better market… then again in 2022 because things felt “too expensive.”

The market always shifts. If the fundamentals make sense today, you can refi when rates drop — but you can’t go back in time and build the equity you would’ve earned by just getting in.

The other piece people forget: you don't have to be locked into one strategy. First property? You can house hack, rent by the room, do MTR/STR, or pivot when life changes. Being creative with your exit options matters way more than chasing a perfect interest rate. You got this :)
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