Recent economic reports seem to indicate that our economy is on a slow roll to recovery. The unemployment rate is at 7.00 percent, still nowhere near the 4.4 percent rate nearly hit in 2006 but still lower than the 9.9 point in 2011. Home pricesrates aren't that big of a deal have recovered and values have experienced a constant month to month increase for the past 20 years.

Wherever you look, there are positive signs. Yet at the same time, the recovery just doesn’t have the steam it should have.

When economic reports are released there’s typically an immediate response in the mortgage rate market. 30 year mortgage rates recently hit a high of 4.50 percent and you would think the sky was falling. Yes, it’s higher than the 3.45 percent we saw in January of 2013 but still we’re near historic lows here.

As a number is released and it looks as if the Fed will end its QE program, rates will begin to rise then a few days later yet another statistic hits the wires and rates fall one more time. In fact, rates have been in this current range of +,- .25 percent. Yes, interest rates over the long haul do in fact matter but on a “now” basis, should .25 percent stop you from buying a new investment property? It pays to understand what the rate really represents; it’s your monthly payment. Your monthly payment is a key ingredient to your cash flow on your rental.

For example, you see a duplex for sale at $250,000. You can put 25 percent down for a principal and interest payment of $1,006 using a 5.00 percent, investor property rate. Then an online prognosticator claims that rates rose this morning by .25 percent to 5.25. Should you hold everything and wait for the rates to fall back again? The payment using 5.25 percent is $1,035, or $29 more. Is $29 each month going to kill your deal? If $29 more causes your cash flow to go negative, it wasn't a good deal in the first place.