ARM vs Fixed for cash flowing property

[Angie Anderson]

Hey BP fam, need some help/input. To ARM or not to ARM. I've read a bunch of Pros and Cons for going with an ARM or not. I'm under contract currently on a 4-plex for $345k. I've been offered 3.625% fixed or 2.75% 5/1 ARM with 1% increases capped at 5%. So here's where I deliberate. Under normal circumstances, I would of course go for a fixed 3.625%, especially now as rates go up and stuck. I'm military and will hack this house for 1.5 years tops, but once I'm stationed somewhere else I will never return to this location again. This will be my first of many MFM and realistically, my exit strategy was always to hold this for 5-7 years and then either sell/cash out to spring board into something bigger. If I was going to keep this for 30yrs, this would be a no brainer (fixed), but that's not the case. I'm very aware of the dangers of potential increased rate and have ran my numbers with the worst case scenario with the value as is. Its not ideal but not horrible, given potential rent increases over the years. I'm finding it hard to not consider the ARM, given my analysis and exit strategy. What yall think? Appreciate any and all feedback.