Rising Rates: Wait to Buy, Invest Now, or Start Selling?

18 snips

Feb 13, 2025

With interest rates on the rise, investors are weighing their options: wait to buy, sell underperforming properties, or keep investing. Innovative strategies are discussed, including a method for doubling cash flow by reviving a classic investment style. New construction offers opportunities for locking in lower mortgage rates, while current high home prices might favor those considering flipping or holding. Practical advice is provided for navigating this unusual real estate landscape with unique financing options and smart tenant screening.

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INSIGHT

Location Focus

Henry Washington is focusing on buying properties in the best areas for higher rents and appreciation.
He's selling properties with low cash flow to reinvest in better locations.

ADVICE

Strategic Selling

Sell properties that don't meet your long-term goals.
Use the capital to invest in properties with better potential.

ANECDOTE

Builder Stress

Kathy Fettke isn't as worried about rates as other rising expenses like insurance and tariffs.
She's finding opportunities due to stressed builders needing to sell inventory.

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Interest rates are still rising even three years after the first rate hikes. So what should you do: wait to buy when rates are lower, sell the underperforming properties you have while prices are high, or keep buying in hopes you can refinance? We’re explaining what each of us is doing with our money during this seven-percent rate era, plus how to score a lower rate loan on rental properties most investors overlook.

How is James planning on doubling his money even with high rates? By bringing back a once-popular investing strategy, James is creating a win-win no matter what direction rates go. You can repeat this, too, if you know his plan. Kathy shares how you can lock in a lower mortgage rate by buying new construction, freeing up cash flow all while having close-to-zero maintenance costs.

Henry shares some advice on why now is a solid time to think about selling the properties you don’t love and why high home prices can work in your favor whether you’re flipping, BRRRR-ing, or buy-and-holding.

In This Episode We Cover

How to still invest in real estate during high interest rates (plus our exact 2025 strategies)

Why now may be the perfect time to sell the properties you’re tired of holding

Better buying opportunities for new builds and how to score a low interest rate on a new property

James’ plan to double his money (and create cash flow) with a refreshed type of BRRRR strategy

The type of loan that has BETTER rates than residential financing (but can be used for rentals!)

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find Investor-Friendly Lenders

Dave's BiggerPockets Profile

Henry's BiggerPockets Profile

James' BiggerPockets Profile

Kathy's BiggerPockets Profile

BiggerPockets Daily 1263 - Investors: Stop Worrying About Interest Rates—Here’s Why Right Now Is the Time to Buy

Pick Your 2025 Investing Strategy with Dave’s Book, “Start with Strategy”

Jump to topic:

(00:00) Intro

(03:02) Cash Flow Down, Prices Up

(07:58) Better Opportunity to Buy?

(12:26) Double Your Money with BRRRR

(21:24) Lower Rate Loans/Strategies

(26:23) “Debt Swap” Financing

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