I'm beginning to get scared of the intrest hike stuff. I do have all of my investment properties on 30 yr fixed but I was thinking of buying the next 2 on a 5 year arm
What are you going to do with the next properties that you're buying? Do you plan to hold them for longer than 5 years? If yes, then forget about the 5 yr arms. Stick to 30 yr fixed and pay off faster if you like. If this is a long-term purchase, and the only way it makes sense is by you doing a 5 yr arm, then it's a bad deal.
As for the interest rates, there's nothing you can really do about them. But when they do go up, it'll mean fewer buyers on the market and less competition for each property. If that doesn't start driving prices down, it'll at least more or less freeze them at a particular level. It'll also make life harder for all those speculators who bought property based only on potential appreciation. Bottom line is if you're patient and careful, there should be some good deals out there even with higher interest rates.
I can still get properties to cash flow on a 30 year fixed but I will say seems to be getting tougher and tougher in my kneck of the woods no matter how hard I look. I'm might start looking for holding for 3 and then flipping thats why the arm's are be coming attractive.
What are you going to do with the next properties that you're buying? Do you plan to hold them for longer than 5 years? If yes, then forget about the 5 yr arms. Stick to 30 yr fixed and pay off faster if you like. If this is a long-term purchase, and the only way it makes sense is by you doing a 5 yr arm, then it's a bad deal.
As for the interest rates, there's nothing you can really do about them. But when they do go up, it'll mean fewer buyers on the market and less competition for each property. If that doesn't start driving prices down, it'll at least more or less freeze them at a particular level. It'll also make life harder for all those speculators who bought property based only on potential appreciation. Bottom line is if you're patient and careful, there should be some good deals out there even with higher interest rates.
Just my $.02.
Good luck.
I can still get properties to cash flow on a 30 year fixed but I will say seems to be getting tougher and tougher in my kneck of the woods no matter how hard I look. I'm might start looking for holding for 3 and then flipping thats why the arm's are be coming attractive.