Do you hold investment properties with variable interest rates?

[Dr. Jordan E Smith]

Just curious what other investors are doing regarding the short fixed interest period on commercial loans.. 

I suppose most would say that they wait to see what the market is doing at the time the variable interest rate kicks in after about 5-7 years but wasn’t sure what options are smart if interest rates are high and start to make the property less profitable, like refinance or selling etc.. 

thanks! 

[David C.]

I don't hold onto variable rate loans.  I personally only purchase 7 year fixed commercial loans and then weigh my options towards the end and then shop again, looking for the best 7-year fixed rate.  That being said, interest rates have been reasonable during the past 15 years, but I fear inflation is going to wreak havoc on rates in the near future.  So that may force me to adapt my model.  Hope that helps.