Quick Question on a BRRRR

[Stephen Brown]

Hello BP,

On a BRRRR when refinancing, do you just go through a normal bank and ask for a conventional loan or do you go to a commercial bank? What if you cannot get a 30 year fixed? Would you still do the BRRRR with a commercial bank or is that just a dumb idea?

[Will Fraser]

You're on the right track here, @Stephen Brown!  

It wouldn't be dumb to BRRRR into a commercial loan, BUT all things considered a conventional loan is superior or many people's needs compared to a commercial loan. It is common for a conventional loan to be amortized over 30 years and fixed at a dirt-cheap interest rate for those decades, while it would be very uncommon to find a commercial loan that offers that (unless there is a kickback or side-angle somewhere).

IF you weren't able to go Conventional, Commercial loans are a great options, and for some situations they might in fact be better.