HELOC 5/5 ARM - too good to be true? What am I missing?

[Greg R.]

Hi all - I'm looking to pull a HELOC to finance first property / properties out of state (I'm in Cali). Have about $400k in equity in home and considering starting with $100-200k HELOC to have funds available, and to only pay for what I use. I'm considering a 5/5 ARM HELOC (with PenFed) - the primary reason is because the rate seems low at 4.25% and locks for 5 years, rather than a conventional HELOC which adjusts annually and starts at a higher rate. Seems like a no-brainer.... BUT am I missing something - wouldn't be the first time :)? What else should I be considering here? Any and all thoughts / advice / personal experience welcome.. thanks so much, Greg