30 year or 5/1 ARM for my situation?

[Jeff Lee]

I own 1 rental and I'm looking to purchase another home. Now, I could buy a $50,000 home with 100% cash, but I want to get a mortgage so I can keep money as reserve, plus let the tenant pay the mortgage.

Looking into the different types of mortgages, should I go with a something traditional (like a 30 yr) or something else? I've been looking into a 5/1 ARM specifically because I can/will pay it off in 5 years and I want to take advantage of the lower fixed-rate. Any information and advice is appreciated. Also, is it possible to get a cashout refinance on my rental property with a 5/1 ARM?