Everybody’s talking about 6.75% mortgage rates right now.  And look — I understand why. Rates matter.

But I think a lot of newer investors, especially in places like Northeast Pennsylvania (NEPA), may be looking at national headlines without adjusting for local math.  A duplex in Wilkes-Barre or Scranton is a very different conversation than a $900,000 property in a major coastal city.  That changes things quite a bit.

For example: A newer investor using FHA financing on a reasonably priced duplex may still be able to live in one unit while the other unit offsets a significant portion of the monthly payment. That's really all "house hacking" is.

This isn't some trendy guru strategy--just owner-occupying a small multifamily property while rental income helps carry the property over time.  People have quietly been doing versions of this for decades.

One thing I still find interesting about parts of NEPA is that the rent-to-price ratios remain healthier than many larger markets where buying costs have completely outrun rents.

Obviously, every deal needs to be evaluated carefully.  Not every property works.  And higher rates absolutely affect cash flow.

But I do think some newer investors may be talking themselves out of opportunities because they’re applying national narratives to local markets that operate very differently.  Don't get yourself caught in that trap, and keep moving forward.

Curious what others here are seeing in their own regions.

Are smaller multifamily properties still penciling out reasonably well in your market at today’s rates… or have higher borrowing costs largely killed the numbers?  Reach out if you'd like to discuss.