How many of you are using ARM loans for fix and flip projects?

[Tony K.]

I'm currently looking into 3/1 ARM loans (2.65% interest from local credit untion) to purchase and sell some fix and flip houses, rather than a a conventional 30 year fixed loan (3.9% apr) to save on interest rates. Since I plan on flipping the house within a year or two, it seems I would benefit more in savings from the lower interest rates offered through ARMs.

I was curious how many investors here use ARM loans for their fix and flip projects? How was that worked out for you? ARMS aren't that risky if property managed, right?

Once I sell the house; I can pay off the loan in it's entirety and reapply for a new ARM loan for my next project. Does this sound like it would work? I can still do the 1031-exchange if I payoff the loan and get another loan to buy more investment properties?

Thanks