Should I refinance from fixed to ARM to stay positive cash flow?

[Sean Pour]

Hi,

I own a condo with 75% Loan-to-Value which is currently in negative $90 cash flow (excluding the tax benefits and expected appreciation) with a 30-year fixed rate mortgage. With the rates slightly lower now, I can refinance to 7-year ARM and lower the monthly payments by about $200 to reach at a positive $120 cash flow. However, I am looking at this condo as a retirement investment and planning to keep it long term. Is refinancing a good strategy to stay in the positive cash flow at least for the next 7 years and sell it if the rates are too high after that? Or I should stick to the existing 30-year fixed mortgage to avoid fluctuations in the monthly payment to keep it for retirement? Or the third option would be selling the condo as a primary residence in the next couple of years. Let me know your thoughts and what would be the right strategy? Thanks!