Rising rates - what is your plan

[Chad Linn]

The Fed is telling us that rates will continue to rise.  Interest rate risk might be the most significant risk if you are borrowing.

Look at a historical prime rates http://www.fedprimerate.com/wall_street_journal_pr... .  

If we get into a period of 10 to 20 years averaging 9, 10, 11 percent prime, what is your plan?  

Rising rates and balloon payments coming due is a great way to clear the market.

[Todd Dexheimer]

Lock in as long of a term as possible. If you are at a floating rate and can lock in for 7-10+ years then you should be ok. If in 10 years the rate is 11%, you will have paid down your principal balance significantly and likely inflation will have happened, so your rents will have increase (and expenses), resulting in still solid cash flow.