Newsflash: 15/1 ARM for multi-family

Hi All,I am looking to purchase a 3-family home, and a 15/1 ARM is looking promising for this particular situation. I just want to make sure i am not missing anything.My goal is to live in the multi-family for 3-4 years, and then purchase a single-family in the ‘burbs.My though process is as follows, buy with 15/1 ARM at 3.75%. Initially, rent on the two other units will pay the mortgage + taxes & insurance. I can then take $250/mo and apply it towards the principal, which will reduce my principal significantly when re-amortization happens at month 181. So even at worst case scenario, my payment is less than my starting payment. As time goes on, and my personal financial picture gets better, I can always increase my principal payment, to bring it down even faster. I currently pay $500/mo in rent, so even doubling my principal payment wouldn’t hurt.You may wonder why I am not looking at a 30/fixed. I am, but my main lender said that the property does not meet the marketability requirements for the two fixed options he has. I have been in touch with other lenders and am waiting for their replies.Edit: Forgot to mention, ARM Cap is 6% over starting rate, with a max yearly increase of 2%.Thanks!



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