Loan for First Time Purchase

[Jacob Stahl]

Hi all, I posted this in another forum, but wanted to drop it here as well.

I am looking to buy my first rental (4 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 year ARMs at 3.25%, 3.625%, and 3.75% respectively with a 2% adjustment and 10% down payment.

I have ran the numbers and either option would have a decent cash flow. I have the cash for the 25% down, but would only leave me with about $5-7k left over which isn’t ideal incase of emergencies. Ideally this would be a buy and hold investment.

Any advice would be greatly appreciated!