Multifamily financing - 30yr fixed vs. ARM

[Devin Scott]

Hi all - 

I'm about to close on a multifamily that I intend to hold for the long run. My initial thought was to use a 30-year fixed, but my friend who is in the mortgage business actually suggested doing something like a 7/1 ARM. Of course this would lower the rate, and he said I would almost certainly want to refi at some point in those 7 years to pull out equity and put it to work somewhere else. This place is in Inglewood CA where prices are going up like 8-10% per year, so it will (almost) definitely appreciate considerably over that time (Rams/Chargers stadium being built, Clippers moving in, new entertainment developments, overall gentrification etc. So it seems very likely there will be equity to pull out after 7 years if not earlier.

Just curious to get people's thoughts on doing an adjustable rate, and whether anyone regretted it?  Thanks!