Invest in rental property when mortgage rates are high?

What's your exact situation - do you have a down payment or are you planning to borrow the max? With rates being high right now, your rental cash flow really needs to cover your monthly payment by a good margin for it to be worth it, otherwise you're just tightening your belt for nothing.

Timing isn't necessarily bad just because rates are high. It really depends on what you're buying and at what price. If a property is listed at 300k but worth 250k under normal conditions, high rates might have crushed prices - in that case you can score a good deal even if you're borrowing expensively. But yeah, if you're counting on minimal rental income to cover your mortgage payment, it's rough with rates at 3.5-4%.

What you really need to check is the rental yield ratio. Like if you're paying 400k for an apartment that brings in 1200€ a month net, it's tight even with a solid down payment. But if the same apartment rents for 1800€, it's already way more manageable. The other thing is reserves - high rates push you to have a real cushion for vacant periods or repairs, not just 2-3 months of rent.

And honestly, waiting for "the right moment" is often a false choice. Rates might drop, prices might go up. You could also refinance in a few years if things really improve. The thing is not to force a bad deal just because you want to invest right now.