HML 5/1 ARM first rental purchase
Hello, so I have been reading a bunch of post on BP and have been doing a lot of study’s in obtaining my first rental property. And I finally had the guts to ask online so I hope it gets answered.
I would like to purchase my first rental property and have been leaning towards a BRRR strategy. However it's pretty competitive in my market to obtain such a good deal. So I was thinking about purchasing a home using a HML and paying any surface level rehab cost out of pocket and getting a 5/1 ARM. I would be renting the property out or even look for a property that already has tenants and refinance few years later out of the 5/1 ARM into a 30 yr FRM when I can secure better financing options.
Would this be a good strategy to get started with a rental? Or am I missing anything that would make it a bad idea. Please let me know what you think thank you all.