Hello BP

Seeking advice on what to do with my LLC rental property loans, which are due to reset in the next few years.

Currently all are 5 year ARM no balloon and 30 year amortization. The reset rate for next 5 year term is 5-yr Treasury + 3% with ceiling of 8-9% (depending on loan). Each property cash flows positive $800-1200 per month, and they will payoff at current rate in 10-13 years applying all profit to loan principal.

Here is the roster:

$400k VALUE $270k loan @ 4.7 until 9/19

$360k VALUE $250k loan @ 3.8 until 5/21

$400k VALUE $275k loan @ 4.17 until 1/1/21

$360k VALUE $175k loan @ 4.56 until 2/1/20

These are investment properties and goal is to take cashflow in 10-12 years/also buying more each year.

My experience thusfar:

Big banks can't do anything with small commercial loans. One would wrap into a 7 yr arm @5.5% to start, IF I transferred over what assets I could for 1% AUM fee - no thanks.

Small local banks have been most flexible, but 3 mostly advise just letting the rates reset as they come up, as the current rates are pretty good - assuming 0.25% rate bumps I guess I'm looking at 5-6% loan rates for the next 5 year term. 

At this point, we are inclined to just let them ride and reset for the next 5-year term.

WWYD/Thanks in advance for any advice!