How I overcome latency problems. Firstly I use a small mixer plus a headphone splitter box really cheap to buy mine was about a fiver, run stereo lead from mixer to computer (line in) lead from headphone out on mixer to splitter ,lead from computer to splitter, headphones out of splitter. I also (my choice) between the mixer and splitter use another old mixer with effects so i'm sending a dry signal to audacity, and effect signal to headphones.