No "debt ratio" problem, Small personal investment
required, Interest only loan while in progress.

The term used for money used for investment property is hard money. Rates are high, but are not a determining factor in a true deal.  If you find a property that is an excellent buy but do not have money to purchase and fix up, this is the true time for hard money. I will give you an example of how the process can work. Make it oversimplified, all homes in a subdivision have sold for $100,000 in the last 3 months. One of the owners pass away and the family does not want to deal with it and only want $60,000 to cover payoff. You only have a couple of grand and the home needs $5,000 in repairs. You go to the bank and investment property is 80% of sales price or $48,000.

This means you need $17,000 to purchase and make repairs. With hard money, the loan is up to 100% of the purchase price and rehab if it is truly 60% of real value. The rate is 5 points ($5,000) to be paid at end of term and 14% interest. Lets assume you repair and sell the property in 6 months and pay a 6% real estate fees. Your cost is $60,000 + $5,000 repair + $6,000 real estate fees, + financing fees. This is sub total of $71,000. The loan would cost $5,000 plus $4,550 in interest or $9,500. The total profit on the deal would be $19,500. With experience and a history of profit, rates may drop.

Difference is one way you can not afford to do the deal, the other way you have little cash involvement and a nice profit. Makes the rates a non-issue.