Analyzing A Deal with a 7/1 ARM

[Camille T.]

I have thus far only done fixed rate and fixed term deals. Easy to plug into the BP calculator and see if it makes sense. Any suggestions on how to analyze ARM deals? I'm looking at a portfolio of properties, local lender will do a 7/1 ARM for around 4%. How to pencil out after the 7 year term since interest rates will be unknown. Would love to hear people's experience with these sorts of deals and financing.