Interest Rate Risk Mitigation

[James Wright]

Hello BP, 

Most people agree that interest rates will rise in the near term.  What are you doing as an investor to mitigate this risk? 

Most Investor loans have a balloon payment or adjust in 5 years.  If interest rates are 7-8% in 5 years will your cash flow be intact?

The only safeguards that I can think of are interest rates fixed for the life of the loan, which if anyone can find these then please let me know where,

Or, having a significant amount of equity in the property, which will allow for refinancing and keeping payment low.  

I would love to hear from the BP community.

Thanks

Jimmy