Are we getting a good deal from our local bank?

[Roger S.]

Hi everyone. Still fairly new to this, we started last June and this month we will close on our 6th property. We own one outright, the others have all been done with our local bank. The first deal was actually 2 SFR next door to each other and the bank did that as one loan. We are strictly Class C, purchase prices are 60k and under.

The bank is writing our notes in house and we have to put down 15%, it's a 5 year ARM on a 15 year amortization. Rate increases were supposed to be capped at 3%, but I negotiated a 2% cap. Since the rate can only increase every 5 years, even if it goes up the full 2%, my payment will not increase and may even go down, because the balance has been paid down during that 5 year period. The interest rate has been hovering around 5 to 5.25%

So far they haven't batted an eye whenever I've brought them a deal.  We have a strong rental market and rents are increasing steadily.

Are these terms that you guys would consider, poor, good or very good?