You’re Looking at the Wrong Deals (And Blaming Interest Rates)

Interest rates are not the main reason deals aren’t working in 2026. The real issue is buying the wrong properties at the wrong price. If a deal only works when rates are low, it was never a strong deal to begin with.

Let Me Say This Straight

Everyone keeps saying, “Rates are killing deals.”

I don’t buy that.

I’ve been doing this for over 20 years. I started in the early 2000s borrowing money at 15% interest. No fancy DSCR loans. No shortcuts. Just raw deals.

And guess what?
We still made money.

Why?
Because we bought right.

The Real Problem Nobody Wants to Admit

Most investors today aren’t losing deals because of rates.

They’re losing deals because:

• They’re buying based on emotion
• They’re picking locations they personally like
• They’re overpaying for “cool” areas
• They’re assuming appreciation will save them

That’s not investing. That’s guessing.

STR Investors Are Making This Mistake A Lot

Here’s what I keep seeing:

Someone goes on vacation… falls in love with an area… then decides:

“I should buy here.”

That’s the problem.

You’re buying based on where you want to stay, not where the numbers make sense.

What Actually Works (From Real Experience)

Instead of chasing trendy STR markets, I keep things simple:

• I focus on real demand
• I target corporate renters
• I stick to 30+ day stays
• I avoid unnecessary turnover and chaos

That’s it.

No hype. No guessing. Just practicality.

Real Example: My Properties

Let’s talk real numbers.

My two properties in Ybor City:

• Bought one for about $50,000
• Bought the other for about $175,000
• Fully furnished… but nothing fancy
  • Think Salvation Army, not designer showroom

And guess what?

• Both have stayed consistently booked
• No over-the-top upgrades
• No bleeding cash
• No stress

Why This Works

Because I didn’t try to impress anyone.

I focused on:

• Function over flash
• Demand over hype
• Price over ego

Tenants don’t care if your couch is Instagram-worthy.

They care if:

• The place is clean
• The price makes sense
• It solves their problem

The Hidden Advantage Most People Ignore

I also own 30+ long-term rentals.

So I’m not depending on STRs to survive.

That’s another big mistake I see:

People go all-in on STRs like it’s a magic strategy.

It’s not.

It’s just another tool.

The Truth About Interest Rates

Let’s be real for a second:

Rates didn’t suddenly “break” real estate.

They just exposed weak deals.

If your deal only works when:

• Rates are low
• Rents are perfect
• Everything goes right

Then it’s not a deal… it’s a gamble.

A Better Way to Think

Before you buy anything, ask yourself:

• Does this work at today’s rates?
• Does this work if rent drops a little?
• Would I still buy this if appreciation stopped?

If the answer is no… walk away.

Keep It Simple (Seriously)

You don’t need:

• Luxury finishes
• Fancy staging
• “Wow factor” properties

You need:

• Good price
• Strong demand
• Solid fundamentals

That’s it.

Key Takeaways

• Rates are not the main problem
• Buying wrong is the problem
• STR success comes from demand, not hype
• Simple setups often outperform fancy ones
• If the deal only works in perfect conditions… it’s not a deal

Final Thought

I’ve seen high rates, low rates, crashes, booms… all of it.

The investors who win aren’t the ones waiting for perfect conditions.

They’re the ones buying smart no matter what the market is doing.

Keep it simple, stay patient, stay true—if I did it, so can you. This is Jorge Vazquez, CEO of Graystone Investment Group and all our amazing companies, and Coach at Property Profit Academy. Thanks for tuning in—until the next article, take care and keep building!

If you’d like to connect directly with me, feel free to book a time here: https://graystoneig.com/ceo.