Loan at AFR for my first rental

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Hi Everyone. I am a Realtor in Colorado and am wanting to get started in investing. I have a unique opportunity to secure a loan at the Applicable Federal Rate (1.04% for 1-3 years, 2.08% for 3-9 years, or 2.77% for 9+ years). The loan is for up to $350,000 and can either be interest only with a balloon payment at the sale of the property or I can pay off principal as well over time.

My question to you vets out there is how would you use it?

My real estate team does new builds and fix and flips (although not as much right now with the hot Colorado market) which is where I first wanted to invest. Through my research though, investing in a single family or multi-family home has become more appealing. This would give me an investment vehicle that would both provide cash flow and equity as I hold it into the future. If I were to go this route, do you recommend an interest only loan to increase my monthly cash flow or do you recommend to pay down the principal each month at the expense of higher cash flow? I could pay it down in chunks as well over time if I went the interest only route and didn't want to sell the property too quickly.

Thanks for any and all advice! I appreciate the wealth of knowledge on these boards!