Hi, my name's David from Holt (Lansing area) in Michigan.I'm a semi-newbie....My wife and I purchased our first home in 2004 with a nothing-down, interest-only, ARM, thinking we'd simply upgrade in three to five years, as I was raised to believe real estate always appreciates.

It's in a 7/1 ARM at 2.875% that won't adjust until 2020.Even with the great interest rate, the property doesn't cash flow (San Diego), some of which is because the HOA keeps jacking up fees (now $500/month).  

Maybe the company should advertise that their agents are armed.

Do I need more explicit leases about who can store stuff in the common hallway? 

I have my current rental property mortgage through Fairport Savings Bank (30 yr fixed @ 4.5%) and I'd consider using them for a cash out refi as well, but I'd probably do a 10/1 arm for that loan.In response to your comment, would there be a seasoning period required for an owner occupied property?

Proceeds go into my SDRIA, and repeat ;-)...no UBIT triggered because I'm not rehabbing and flipping....just acquiring and selling passively at arms length.

CL uses the ability of generated income from the property to cover the debt, using a thing called the DSCR.With MFUs 2-4, the loan can go conventional or commercial, but if you pick a MFU 5+ it must be a CL, ARM loan.

If that property "leaks" its negativity into another, then dominos into a third, and so on, then you are over leveraged.If none of your properties now, and in the future (ARM), then I don't think of that as being over leveraged since the source of your funds to pay the debt, comes from your tenants.  

Unless its a arm lengths transaction off of MLS and the Sellers were represented by a broker .

Duplex mortgage #5-10 - 65% LTV The purchase transaction was an arm’s length transaction The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property.