Investor · Milwaukee, WI · Member since 2014 · 69 posts · 13 votes
Dear bp family,
I want to know how you all feel about ARMs on cash-flowing rental properties. Im looking to possibly do an investment loan on a four family or duplex. The credit union and bank lenders (milwaukee,wi) that i have approached have all offered ARM loans amortized over 20-30 years with 25% down at 4-6 percent on no occupied multi family properties.
I personally like 20-30 year fixed products
ARMs somewhat “scare” me ! Even though the property will be a cash flowing multifamily.
I appreciate ALL of you feedback. Feel free to connect with me !
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
8y
@Nolan Gray there are lenders who provide fixed 30 year notes on rental property. I'd suggest looking for a national conventional lender. Sometime you have to look outside of your back yard my friend. All the best.
I want to know how you all feel about ARMs on cash-flowing rental properties. Im looking to possibly do an investment loan on a four family or duplex. The credit union and bank lenders (milwaukee,wi) that i have approached have all offered ARM loans amortized over 20-30 years with 25% down at 4-6 percent on no occupied multi family properties.
I personally like 20-30 year fixed products
ARMs somewhat “scare” me ! Even though the property will be a cash flowing multifamily.
I appreciate ALL of you feedback. Feel free to connect with me !
Fixed only. If it doesn't work with fixed you will lose it later on an adjustable. Fixed only.
Investor · Milwaukee, WI · Member since 2014 · 69 posts · 13 votes
8y
Mike S. I appreciate the feedback. Fixed only is definitely my “Gut” feeling... Having a credit score under 680 i have been offered ARMs many times. I do know fellow investors that have used them and they don’t look at them negatively even though they are paying more.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
8y
@Nolan Gray there are lenders who provide fixed 30 year notes on rental property. I'd suggest looking for a national conventional lender. Sometime you have to look outside of your back yard my friend. All the best.
Investor · Cincinnati, OH · Member since 2015 · 242 posts · 182 votes
8y
In my experience you can only get fixed rate if you buy in your name, property is 4 units or less, and you don’t own too many. If you buy as an LLC you’re looking at an ARM. The limit on number of rentals varies from 4-10. I think these are Fannie/Freddie rules. ARM’s are fixed for 5 years and based on 20, 25, or 30 year amortization.