Should we buy a multifamily with an adjustable rate mortgage?

[Nick Bleser]

Hi folks!

There is a property available in my town that is 3-4plex's. It's listed for $600,000 and could bring in $84,000 in gross income. After our best estimation with the info we have available we believe it could cash flow bringing in $1,500 net a month. 

So far I've talked to 2 smaller banks and because it's more than 5 units it's considered commercial. Since it's commercial I can't get a fixed rate. Is this the case with all lenders? 

I recently listened to "The Real Estate Guys" and they made a great comment about avoiding adjustable interest rates when approaching a downturn in the market and frankly I want a fixed rate. Can I find a 20-30 year fixed loan on a property this size?