Loan Options for First Purchase

[Jacob Stahl]

Hello all,

I am looking at buying my first rental (four unit apartment building) and wanted to get some feedback on some loan options I have. 
Here are my options I am considering:

1. A 30 year fixed rate mortgage at 3.5% with a 25% down payment. 
or
2. Options of 5, 7, or 10 ARMs at 3.25%, 3.625%, and 3.75% respectively with a 2% adjustment and a 10% down payment. 

I have ran the numbers and any option would have good cash flow. I have the cash for the 25% down, but it wouldn’t leave me with a lot leftover ($5-7k) which isn’t ideal incase of emergencies. Ideally I would buy and hold this property. 

Any advice would be greatly appreciated, thanks!