Rental Property Investor · Pacific Palisades, CA · Member since 2013 · 7 posts · 1 vote
What makes the most sense financially? I’m looking at a four-plex and the rates I’m being offered are:
Option A: 30 year fixed at 4.875%
Option B: 5 year ARM interest only at 5.125%
With Option A I won’t get any cash flow but I’ll be accumulating equity in the property. With Option B I will get about $4k a month. The down payment I’m putting into this property is $800k. My plan is to keep this investment property forever or for at least 10 years. What makes the most sense financially?
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
7y
A four plex that won't cash flow with a 30 year loan would appear to be overpriced. I realize the Cali market is sorta its own thing but are you sure this is a good deal?