15 yr fixed versus 10/25 ARM

[Josef Torkelsen]

Appreciate some BiggerPockets Community advice on which loan is better for our multifamily apartment complex.  We are young real estate investors and will be seeking to expand our real estate portfolio in the future:

15 yr fixed 3.75% down-payment 20%

25 yr amortized 10 yr fixed at 4% auto adjusting every 5 years down-payment 25% (no ceiling, no limits on amount of change)

Property Cap Rate: 8.7%

Cash on Cash for 15 Year: 13.4%

Cash on Cash for 25 Year: 5.9%

The different of the monthly mortgage payment is about $1100 a month.