All Forum Posts by: Jessica Frisk

Thanks for the input. The 30 year fixed was at 7.25% with §12,000 down. This was a negative cash flow of about $650 so we threw this option out immediately. We have HELOC money available from our primary and one of our rentals at about this same rate, so that could be a backup plan.

We have just entered into contact on an investment property duplex. We can get a 7/1 ARM at 5.35% with $12,000 in closing costs or 6% with $7,100 in closing costs. Alternatively, we can get a 15 year fixed at 5.25% with $8,800 closing costs. While none of these options allow for immediate cash flow on the property (we are on the northern CA coast) the ARMS would allow us to break even. The 15 year fixed would be about $1,000 out of pocket monthly.

We own other single family homes in the area and cash flow on those. We are concerned with where interest rates might go in the next 7 years. Any advice is welcome. Thank you.