@Manan PatelRates have moved significantly in the past few weeks as inflation increases and with the Fed talking about 3 interest rate moves this year, the expectation is upward pressure on rates going forward.

Most likely with our inflation, rates in 5 years will make 4.375 look like a rock bottom rate.

These actions are meant to cool the housing market and slow inflation. 

Rates are rising so now is the time to jump in as every month the rates will rise until inflation is under control.Debt service coverage lending only is concerned with your credit score (the ratio of rental income to total mortgage payment) and, 6 months of savings in some type of investment account. 

Are you trying to hedge your money against inflation while being in a high appreciation/equity market?

There is no point in it sitting in her account while she pays interest on it and inflation eats it away.Your plan to refi is doable.

So, for my calculations, I may use something like $1500 per year for repairs like a water heater, furnace, roof, plumbing, exterior painting and maintenance and then I put into my calculations the cost to clean, paint and put a rental unit back together every 5 years when the average tenant moves and that cost is $5,000 to $8,000 depending on the size of the unit, whether it is a house, or an apartment and the size of the yard and number of plants and trees.The next most critical numbers that have to be considered is the principal pay down when you have a loan, tax depreciation over a number of years, some sort of inflation rate, annual rent increases are very critical and my favorite calculation that makes breaks many deals is property taxes and annual increases.

Since you need your money in ten months, think of inflation as your cost of safety.

Expense inflation vs. rent inflation vs. appreciation at 3%/3%/4% respectively. 3% annual increase in rent seems conservative.

Unless they keep printing trillions, but we know that they plan to taper QE and increase interest rates to fight inflation.