10/1 IO or 30 year fixed given my situation (keep reading!)

[Ron Ripley]

Hey team!

Here's one for you to chew on! lol I am about to refi a few investment property loans and pull cash out to purchase a few more. Everything is going great so far with my lender. Here is my dilemma: I am trying to decide between the 10/1 I/O (interest only) product or a typical 30 yr. fixed. Most of you probably know the pros of a 10/1 I/O (a better rate which means a lower mortgage payment which means much better cash flow [$2-300 difference which is significant]). My thought is that by 10 years (if not sooner), I can either pay them off completely (no prepayment penalties) or refinance to a fixed rate if I need to. I've ran all the numbers and could not think of any reason not to go with the Interest-only option - then today, it dawned on me that once I am retired, trying to refinance could be much more difficult. I am 57 and hope to retire in 5ish years.

I plan to discuss this with my lender tomorrow when we chat, but is anyone in a similar situation with age/retirement and what are your thoughts on the 10/1 IO vs. 30 yr. fixed scenario? Thanks gang.