I think you are correct in your thinking - a lot of lenders right now are pricing 30-year fixed rate and 5-year ARMs essentially the same, with only the slightest benefit to the ARM option - generally because there is a very low probability priced in that rates will be higher in 5 years. 

Purchase price: $400,000Multifamily duplex in Merry Oaks, each unit is 2 bedroom and 1 bath, this transaction was a Judicial sale sold as is and was subject to 10 day upset bid period with Mecklenburg County w/ free and clear title, 6 months later & Zillows zestimate is $577,100 before any repairs or updates have been made. 1827 Merry Oaks Rd, Charlotte, NC 28205 📍#realestate #realtor #investing #property #houseflipping #realestateagent #biggerpocketsWhat made you interested in investing in this type of deal?

If appreciation averages 4% conservatively, and the median home price is roughly $450,000.

Most likely over priced for the rent.

Bought for $18,000 cash and now priced at $90,000.

Purchase price: $70,000 used as a mid term rental..

Purchase price: $650,000 Cash invested: $240,000 I bought raw land ($170K) and designed the home and managed the construction.

Returns can be good if you treat it like a business and operate in the top 10% of owners with regards to pricing, theming of the home, the community you are in, responsiveness, cleanliness etc. 

Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.

I think one of the tricks is rental rates are fairly low compared to sales prices.