Interest Rate Resetting on a Rental
I've been thinking about my long-term position on some of my rentals and foresee a problem coming in a few years.
Two of the mortgages on my rentals are ARMs and will be resetting in a few years. The current rate on both is +/- 5%, but with the anticipated inflation, I can see these resetting at a much higher rate without an equivalent increase in rent income.
Has anyone else considered this problem and what can you do to protect yourself?
The one or two local banks that still work with investors only offer ARMs so I don't know that I have many options for my future investments.
Most Popular Reply
Do you have the ability to refinance into a conventional investor loan on these two properties?
If not, is there anything you can do to position yourself to be able to refi in the next year or two?