CalculateRealEstateROI

Risk Management

How do I hedge interest rate risk?

Lock fixed rates on long holds, buy rate caps on floating debt, stagger maturities across portfolio.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Lock fixed rates on long holds, buy rate caps on floating debt, stagger maturities across portfolio.

Expanded explanation

Don't take floating-rate debt on long-term holds. If using bridge/ARM, buy a rate cap. Stagger maturities so no single year carries refi risk for the whole portfolio.

Examples

  • Portfolio with maturities in 2027, 2029, 2031 — no concentration.

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