Loan for first investment property?

[Jeff White]

I am in the process of finding/purchasing my first rental property. I am going to finance the property. My Credit union is offering a 5/1 ARM for investment property. What is your feeling on this? Any advice is greatly appreciated.

[Tammy Vitale]

If you are a buy and hold, go for the fixed rate if you're in it for the long run. If you are going to hold less than 5 years, then an ARM might work, and/or if you know you can refinance to a 30 year within that 5 years. Travis is absolutely right about where we are right now with interest rates. Know your exit plan/goals before signing on the dotted line.